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Adams Camps, Inc. leases the land on which it builds camp sites. Adams is considering opening a new site on land that requires $2,200 of
Adams Camps, Inc. leases the land on which it builds camp sites. Adams is considering opening a new site on land that requires $2,200 of rental payment per month. The variable cost of providing service is expected to be $5 per camper. The following chart shows the number of campers Adams expects for the first year of operation of the new site:
Jan. | Feb. | Mar. | Apr. | May | June | July | Aug. | Sept. | Oct. | Nov. | Dec. | Total |
170 | 270 | 230 | 220 | 360 | 520 | 670 | 670 | 370 | 400 | 200 | 320 | 4,400 |
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Assuming that Adams wants to earn $8 per camper, determine the price it should charge for a camp site in February and August. (Do not round intermediate calculations.)
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