Parkway Travel Tours is organizing a five-day trip from Toronto to Branson, Missouri, a family town with all types of attractions and theatres. Although it is a small town (around 10,000 people), Branson attracts millions of visitors every year. Branson hosts more than 100 live shows in 52 state-of-the art theatres. For this particular five-day trip, it will cost the agency the following: Buss and driver Travel guide Advertising Meals per person/day Hotel rooms (night) Events/attractions Other fixed costs Miscellaneous variable costs Price per client $2,500/day $500/day $1,000 (brochure and newspapers) $5.00 (4 breakfasts) $20.00 (5 dinners) $60.00 (4 nights) $40.00 (per event for a total of 7 events) $1,000 $100 (per person) $1,700

Parkway Travel Tours is organizing a five-day trip from Toronto to Branson, Missouri, a family town with all types of attractions and theatres. Although it is a small town (around 10,000 people), Branson attracts millions of visitors every year. Branson hosts more than 100 live shows in 52 state-of-the art theatres. For this particular five-day trip, it will cost the agency the following: Buss and driver Travel guide Advertising Meals per person/day Hotel rooms (night) Events/attractions Other fixed costs Miscellaneous variable costs Price per client $2,500/day $500/day $1,000 (brochure and newspapers) $5.00 (4 breakfasts) $20.00 (5 dinners) $60.00 (4 nights) $40.00 (per event for a total of 7 events) $1,000 $100 (per person) $1,700

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 8MC

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