QBA HW 3.docx - Eli Harris QBA HW 3 Question 1 The most...

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Eli Harris QBA HW 3 Question 1.) The most profitable boat tour for Royal Kona in 2015 was the Sunset with a profit of $247,000 2015 Royal Kona Tour Information Tour Lanai Villager Sunset Price per passenger $75 $80 $100 Fixed Costs boat depreciation $110,000 $100,000 $100,000 boat maintenance $39,000 $26,000 $27,000 insurance $6,000 $6,000 $6,000 share of hotel costs $22,000 $22,000 $22,000 advertising $18,000 $18,000 $18,000 Variable Costs (per trip) fuel $150 $120 $210 tour guide $165 $100 $160 passenger food $210 $105 $350 docking fees $75 $90 $- Number of trips per year 200 150 200 Mean passengers per trip 27 25.5 28.2 Annual Profit $90,000 $71,750 $247,000 Question 2.) The boat tour that makes the most per additional trip is the Sunset making an additional $2,100 Variable Costs (per trip) fuel $150 $120 $210 tour guide $165 $100 $160 passenger food $210 $105 $350 docking fees $75 $90 $- Number of trips per year 200 150
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