Answer:
since the EBIT without monthly leasing and boarding costs is $60,247.96, then that would be the highest possible amount that the company could pay for leasing and boarding if it wants to break even.
Explanation:
Since the company expects to sell 7,054 tickets per month:
- I will assume 60% are sold by brokers = 7,054 x 60% = 4,232 tickets
*the question stated that brokers sold 65% of the tickets and the company 40%, but that is above 100%
total monthly revenue = 7,054 x $18 = $126,972
municipal fee 17% of revenue = $317,430 x 17% = ($21,585.24)
cost of souvenir per passenger $0.50 = 7,054 x $0.50 = ($3,527)
carriage drivers wage = 7,054 x $2.90 = ($20,456.60)
monthly payroll = ($8,500)
monthly fixed costs = ($8,000)
brokerage fees = 4,232 x $1.10 = ($4,655.20)
EBIT without monthly leasing and boarding costs = $60,247.96
since the EBIT without monthly leasing and boarding costs is $60,247.96, then that would be the highest possible amount that the company could pay for leasing and boarding if it wants to break even.
