Scenario 15-3
Vincent Operates a Scenic Tour Business in Boston

question 154

Short Answer

Scenario 15-3
Vincent operates a scenic tour business in Boston. He has one bus which can fit 50 people per tour and each tour lasts 2 hours. His total cost of operating one tour is fixed at $450. Vincent's cost is not reduced if he runs a tour with a partially full bus. While his cost is the same for all tours, Vincent charges each passenger his/her willingness to pay: adults $18 per trip, children $10 per trip, and senior citizens $12 per trip. At those rates, on a typical day Vincent's demand is:
$$\begin{array} { | l | l | l | } \hline \text { Passen ger Type } & \text { Willingness to Pay } & \text { Demand per day } \\\hline \text { Adults } & \$ 18 & 70 \\\hline \text { Children } & \$ 10 & 25 \\\hline \text { Senior Citizens } & \$ 12 & 55 \\\hline\end{array}$$ Assume that Vincent's customers are always available for the tour; therefore, he can fill his bus for each tour as long as there is sufficient total demand for the day.
-Refer to Scenario 15-3. What is Vincent's cost of serving all passengers demanding a tour on a typical day?

Understand the concept of vicarious liability and its application in the workplace.

Recognize the legal mechanisms available for victims of workplace discrimination and harassment, such as the offer of judgment.

Distinguish between different forms of workplace harassment and discrimination, including sexual harassment, hostile work environment, and constructive discharge.

Identify the steps and procedures for addressing sexual harassment claims within an organization.

---

Definitions:

Overhead Rate

The ratio used to allocate overhead costs to produced units, calculated by dividing total overheads by an allocation base like labor hours.

Work in Process Inventory

Inventory that includes all materials and labor currently in the process of being manufactured but not yet completed.

Manufacturing Costs

Manufacturing costs are all the direct costs associated with producing goods, including direct labor, materials, and allocated overhead.

Landscaping Design

The art and practice of planning and designing outdoor landscapes, focusing on aesthetics, functionality, and ecosystem sustainability.