Volume and pricingDim Witt is the county commissioner of Clueless County. He decided to institute tolls for local ferry boat passengers. After the tolls had been in effect for four months, Astra Astute, county accountant, noticed that collecting $1,450 in tolls incurred a dailycost of $2,000. The toll is $0.50 per passenger.a. How many people are using the ferry boats each day? 2,900b. (1) If the $2,000 cost is entirely fixed, how much must each passenger be charged for the toll process to break even?Note: Round your answer to two decimal places (for example, round $4.655 to $4.66).$0.69(2) How much must each passenger be charged for the toll process to make a profit of $250 per day?Note: Round your answer to two decimal places (for example, round $4.655 to $4.66).$ 0.78c. Assume that only 80 percent of the $2,000 is fixed and the remainder varies by passenger. If the toll is raised to $0.60 per person, passenger volume is expected to fall by 10 percent. If the toll is raised and volume falls, will the county be better or worseoff than it is currently and by what amount?Note: Round your answer to two decimal places (for example, round $4.655 to $4.66).Better off by ✔ $ 216Xd. Assume that only 80 percent of the $2,000 is fixed and the remainder varies by passenger. If passenger volume will decline by 5 percent for every $0.20 increase from the current $0.50 rate, at what level of use and toll amount would the county firstmake a profit?Note: Round your answer to two decimal places (for example, round $4.655 to $4.66).The company would make a profit of $0Xat a fare level of $ 0.9

It is the process of making decisions that involve the management of costs in order to achieve…

Dim Witt is the county commissioner of Clueless County. He decided to institute tolls for local ferry boat passengers. After the tolls had been in effect for four months, Astra Astute, county accountant, noticed that collecting $1,450 in tolls incurred a di cost of $2,000. The toll is $0.50 per passenger. a. How many people are using the ferry boats each day? 2,900 ✓ b. (1) If the $2,000 cost is entirely fixed, how much must each passenger be charged for the toll process to break even? Note: Round your answer to two decimal places (for example, round $4.655 to $4.66). $ 0.69 ✓ (2) How much must each passenger be charged for the toll process to make a profit of $250 per day? Note: Round your answer to two decimal places (for example, round $4.655 to $4.66). $ 0.78 ✓

Dim Witt is the county commissioner of Clueless County. He decided to institute tolls for local ferry boat passengers. After the tolls had been in effect for four months, Astra Astute, county accountant, noticed that collecting $1,450 in tolls incurred a di cost of $2,000. The toll is $0.50 per passenger. a. How many people are using the ferry boats each day? 2,900 ✓ b. (1) If the $2,000 cost is entirely fixed, how much must each passenger be charged for the toll process to break even? Note: Round your answer to two decimal places (for example, round $4.655 to $4.66). $ 0.69 ✓ (2) How much must each passenger be charged for the toll process to make a profit of $250 per day? Note: Round your answer to two decimal places (for example, round $4.655 to $4.66). $ 0.78 ✓

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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