22. Subject:- Accounting Matt Simpson owns and operates Quality Craft Rentals, which offers canoe rentals and shuttle service on the Nantahala River.Customers can rent canoes at one station, enter the river there, and exit at one of two designated locations to catch a shuttle thatreturns them to their vehicles at the station they entered. Following are the costs involved in providing this service each year:Canoe maintenanceLicenses and permits:Vehicle leasesStation leaseAdvertisingOperating costsFixed Costs$3,1503,8506,2507,7706,85021,850Variable.Costs$8.00.Price per rental0006.006.00Quality Craft Rentals began business with a $26.500 expenditure for a fleet of 30 canoes. These are expected to last 10 more years, atwhich time a new fleet must be purchased. Rentals have been stable at about 6,700 per year.Required:Matt is happy with the steady rental average of 6,700 per year. For this number of rentals, what price should he charge per rental forthe business to make an annual 15% before-tax return on assets using life-cycle costs? (Do not round intermediate calculations.Round your answer to 2 decimal places.)

Costs that are fixed do not fluctuate in response to changes in activity. As the degree of activity…

Matt Simpson owns and operates Quality Craft Rentals, which offers canoe rentals and shuttle service on the Nantahala River. Customers can rent canoes at one station, enter the river there, and exit at one of two designated locations to catch a shuttle that returns them to their vehicles at the station they entered. Following are the costs involved in providing this service each year: Canoe maintenance Licenses and permits Vehicle leases Station lease Advertising Operating costs Fixed Costs $ 3,150 3,850 6,250 7,770 6,850 21,850 Price per rental Variable Costs $ 8.00 0 0 0 6.00 6.00 Quality Craft Rentals began business with a $26.500 expenditure for a fleet of 30 canoes. These are expected to last 10 more years, at which time a new fleet must be purchased. Rentals have been stable at about 6,700 per year. Required: Matt is happy with the steady rental average of 6,700 per year. For this number of rentals, what price should he charge per rental for the business to make an annual 15% before-tax return on assets using life-cycle costs? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Matt Simpson owns and operates Quality Craft Rentals, which offers canoe rentals and shuttle service on the Nantahala River. Customers can rent canoes at one station, enter the river there, and exit at one of two designated locations to catch a shuttle that returns them to their vehicles at the station they entered. Following are the costs involved in providing this service each year: Canoe maintenance Licenses and permits Vehicle leases Station lease Advertising Operating costs Fixed Costs $ 3,150 3,850 6,250 7,770 6,850 21,850 Price per rental Variable Costs $ 8.00 0 0 0 6.00 6.00 Quality Craft Rentals began business with a $26.500 expenditure for a fleet of 30 canoes. These are expected to last 10 more years, at which time a new fleet must be purchased. Rentals have been stable at about 6,700 per year. Required: Matt is happy with the steady rental average of 6,700 per year. For this number of rentals, what price should he charge per rental for the business to make an annual 15% before-tax return on assets using life-cycle costs? (Do not round intermediate calculations. Round your answer to 2 decimal places.)