This problem contains three parts. In Part A, you are asked to determine the parameters of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
This problem contains three parts. In Part A, you are asked to determine the parameters of the profit function - the contribution margin and the fixed costs. You should not move on to Parts B and C until you get Part A correct, or until you use up all of your tries. The correct profit function parameters will be given to you after you have completed Part A - you should use these parameters in Parts B and C. The problem is worth 20 points. Parts A and B are worth eight points each; Part C is worth four points. To get the eight points for Part A, you must answer both questions correctly; to get the eight points for Part B, you must answer all four questions correctly. You get six tries on Part A, eight on Part B, and four on Part C. Charleston Carriage Company offers guided horse-drawn carriage rides through historic Charleston, South Carolina. The carriage business is highly regulated by the city. The fare for all passengers is $19.50. Charleston Carriage has the following monthly operating costs: Fee paid to the city of Charleston Cost of souvenir set of postcards given to each passenger Monthly cost of leasing and boarding the horses Carriage drivers (tour guides) are paid on a per-passenger basis Monthly payroll costs of non tour guide employees Marketing, web-site, telephone, and other monthly fixed costs 17% of ticket revenue $0.50 per set $50,000 $3.10 per passenger $8,500 $8,000 In addition to these costs, Charleston Carriage pays brokerage fee of $1.00 per ticket sold by brokers. On average, 70% of tickets are issued through these brokers; 30% are sold directly by Charleston Carriage. Charleston Carriage has several questions about its monthly revenues, costs, and profits in 2017. REQUIRED [ROUND YOUR ANSWER TO PART A, QUESTION 1 TO THE NEAREST CENT; ROUND ALL OTHER ANSWERS TO THE NEAREST UNIT OR NEAREST DOLLAR.] Part A (6 tries; 8 points) 1. What is the estimated monthly contribution margin per passenger for Charleston Carriage in 2017? 2. What are the estimated total monthly fixed costs for Charleston Carriage in 2017? 提交答案 Tries 0/6 Part B (8 tries; 8 points) 3. What is Charleston Carriage's estimated monthly operating income in 2017 if the number of monthly passengers is 8,700? 4. How many monthly passengers would be required for Charleston Carriage to break even in 2017? 5. How many monthly passengers would be required for Charleston Carriage to earn $112,000 per month in 2017? 6. Assuming a tax rate of 35%, what must revenue be in order for Charleston Carriage to earn $112,000 per month in 2017? # Tries 0/8 Part C (4 tries; 4 points) 7. Charleston Carriage has an opportunity to negotiate with the company that leases the horses and boards them. If Charleston Carriage expects to sell 6,598 tickets per month in 2017, what's the most it could pay to lease and board the horses if it wants to break even each month (ignoring taxes)? 提交答案 Tries 0/4 This problem contains three parts. In Part A, you are asked to determine the parameters of the profit function - the contribution margin and the fixed costs. You should not move on to Parts B and C until you get Part A correct, or until you use up all of your tries. The correct profit function parameters will be given to you after you have completed Part A - you should use these parameters in Parts B and C. The problem is worth 20 points. Parts A and B are worth eight points each; Part C is worth four points. To get the eight points for Part A, you must answer both questions correctly; to get the eight points for Part B, you must answer all four questions correctly. You get six tries on Part A, eight on Part B, and four on Part C. Charleston Carriage Company offers guided horse-drawn carriage rides through historic Charleston, South Carolina. The carriage business is highly regulated by the city. The fare for all passengers is $19.50. Charleston Carriage has the following monthly operating costs: Fee paid to the city of Charleston Cost of souvenir set of postcards given to each passenger Monthly cost of leasing and boarding the horses Carriage drivers (tour guides) are paid on a per-passenger basis Monthly payroll costs of non tour guide employees Marketing, web-site, telephone, and other monthly fixed costs 17% of ticket revenue $0.50 per set $50,000 $3.10 per passenger $8,500 $8,000 In addition to these costs, Charleston Carriage pays brokerage fee of $1.00 per ticket sold by brokers. On average, 70% of tickets are issued through these brokers; 30% are sold directly by Charleston Carriage. Charleston Carriage has several questions about its monthly revenues, costs, and profits in 2017. REQUIRED [ROUND YOUR ANSWER TO PART A, QUESTION 1 TO THE NEAREST CENT; ROUND ALL OTHER ANSWERS TO THE NEAREST UNIT OR NEAREST DOLLAR.] Part A (6 tries; 8 points) 1. What is the estimated monthly contribution margin per passenger for Charleston Carriage in 2017? 2. What are the estimated total monthly fixed costs for Charleston Carriage in 2017? 提交答案 Tries 0/6 Part B (8 tries; 8 points) 3. What is Charleston Carriage's estimated monthly operating income in 2017 if the number of monthly passengers is 8,700? 4. How many monthly passengers would be required for Charleston Carriage to break even in 2017? 5. How many monthly passengers would be required for Charleston Carriage to earn $112,000 per month in 2017? 6. Assuming a tax rate of 35%, what must revenue be in order for Charleston Carriage to earn $112,000 per month in 2017? # Tries 0/8 Part C (4 tries; 4 points) 7. Charleston Carriage has an opportunity to negotiate with the company that leases the horses and boards them. If Charleston Carriage expects to sell 6,598 tickets per month in 2017, what's the most it could pay to lease and board the horses if it wants to break even each month (ignoring taxes)? 提交答案 Tries 0/4
Expert Answer:
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
Students also viewed these accounting questions
-
Foreign Sub is a wholly owned subsidiary of U.S. Domestic Corporation. U.S. Domestic Corporation acquired the subsidiary several years ago. The financial statements for Foreign Sub for 2017 in its...
-
In this exercise you are asked to determine the beta coefficient for Senior Housing Properties Trust. Data for this task are contained in the data file Return on Stock Price 60 Months. Interpret this...
-
Charleston Carriage Company offers guided horse-drawn carriage rides through historic Greenville, South Carolina. The carriage business is highly regulated by the city. Charleston Carriage Company...
-
Pew Research published survey results from two random samples. Both samples were asked, Have you listened to an audio book in the last year? The results are shown in the table below. a. Find and...
-
Twenty thousand shares reacquired by Sierra Land Inc. for $153 per share were exchanged for land that has an appraised value of $3,600,000. At the time of the exchange the common stock was trading at...
-
The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2017, the date on which the company is to file a voluntary petition of bankruptcy: LIMESTONE...
-
How can a plaintiff enforce a settlement agreement made by the defendant?
-
Comprehensive review problem. Exhibits 16.8 and 16.9 (on pages 796 and 797) present a partial set of financial statements of Chicago Corporation for 2009, including a consolidated statement of income...
-
Reflect on only one (1) of the following: "Business vs Functional": How is the difference between a Business Requirement and Functional Requirement? , "Structure": How is a Requirement written?...
-
please assist in implementing the included functions. import utils import pilots import os.path # WEATHER FUNCTIONS def bad_visibility(visibility,minimum): """ Returns True if the visibility...
-
Write the Recitals portion of the contract.Be sure to designate five (5) clauses that they deem essential for inclusion in the contract. After designating the five essential clauses, discuss the...
-
Given what you know about energy economics right now and the EV market, what are your predictions and economic implications that the electric vehicle adoption and transition have on the United...
-
What is the total rewards and recognition program? What are the five 5 components of the total reward system?
-
Describe, what do researcher write/include in "research report" as per standardoutline or headings ?
-
Define displacement and give an example of a situation where an object can have a non-zero displacement while its distance traveled is zero.
-
In the past 25 years, there have been several attempts by US politicians to codify a requirement for zero government deficits into law. In the mid-1990s, for example, Congress considered a 'balanced...
-
3. To start a nuclear fusion reaction, two hydrogen atoms of charge +le must be fired at each other. [12A] a)If each particle has an initial velocity of 2.7 x10 m/s when released, what is their...
-
Determine the annual percentage yield for a loan that charges a monthly interest rate of 1.5% and compounds the interest monthly.
-
A: Suppose the production process for a firm is homothetic and has decreasing returns to scale. (a) On a graph with labor on the horizontal and capital k on the vertical axis, draw an isoquant...
-
Suppose two people want to see if they could benefit from trading with one another in a 2-good world. A: In each of the following cases, determine whether trade might benefit the two individuals: (a)...
-
In most Western democracies, it is settled law that governments cannot simply confiscate land for public purposes. Such confiscation is labeled a taking and, even when the government has compelling...
-
In a survey of a simple random sample of students at a certain college, the sample mean time per week spent watching television was 18.3 hours and the margin of error for a 95% confidence interval...
-
Use the data in Exercise 4 to construct a 95% confidence interval for the mean IQ score. Exercise 4 An IQ test was given to a simple random sample of 75 students at a certain college. The sample mean...
-
The lifetime of a certain type of battery is known to be normally distributed with standard deviation = 20 hours. A sample of 50 batteries had a mean lifetime of 120.1 hours. It is desired to...
Study smarter with the SolutionInn App