Pat Baldwin Owns and Operates Outstanding Quality Rentals (OQR)

question 25

Essay

Pat Baldwin owns and operates Outstanding Quality Rentals (OQR). OQR offers kayak rentals and shuttle service on the Petaholee River. Customers can rent kayaks at one station and enter the river there. They can then exit at one of two designated locations to catch a shuttle to return them to their vehicles. Following are the costs involved in providing this service each year. OQR began business three years ago with a $36,000 expenditure for a fleet of 50 kayaks. These are expected to last seven more years, at which time a new fleet will be purchased. Pat is satisfied with the steady average rentals per year of 9,900.
Required:
What price should Pat charge per rental for the business to make a thirty percent life cycle profit?

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Definitions:

Itard

Jean Marc Gaspard Itard was a French physician known for his work with the "Wild Boy of Aveyron," which laid foundational work in the fields of special education and psychology.

Developmental Science

An interdisciplinary field of research aimed at understanding the nature of human growth and development across the lifespan.

Developmental Science

An interdisciplinary field studying the changes that occur in individuals (especially human beings) over the course of their lifespan.

Interdisciplinary

Involving two or more academic, scientific, or artistic areas of knowledge or disciplines.