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4. Jefferson City constructed a swimming pool in FY 2020, and you have been asked to calculate the user charge based on an estimate of
4. Jefferson City constructed a swimming pool in FY 2020, and you have been asked to calculate the user charge based on an estimate of 10,000 swimmers. Since the pool is inside a building it will remain open all year. Household income in Jefferson City is $100,000 per year. (25 points) Use the cost-volume profit formula, the information in the directions, and the items listed below to construct your user charge. O O The city received a one-time gift of $55,000 to subsidize the first year of operation. Allocated fixed costs are projected at $25,000. Variable costs are projected at $3.00 per swimmer. Using the same figures, estimate the user charge for the second year as well. However, assume that the number of swimmers increases by 2,000 and the local government will take $60,000 from the general fund to subsidize the pool. What can the government do to maintain the current user fee? O Employee salaries, insurance, fringe benefits, equipment maintenance, and utilities are projected at $65,000. O
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