Answer the following questions. Show all work.

3. If the fixed costs for keeping the pool open all summer is $20,000 (of which $10,000 is allocated to open swim time as opposed to swim lessons or the swim team) and the variable costs of open swim is $.50 per person, how many people will it take to show a profit for the summer if you charge $1.50 per person for open swimming? How about $2.00 per person for open swimming?

4. Within your nonprofit organization, all childrens swimming lessons are subsidized at $5.00 per participant. The fixed costs for the childrens learn-to-swim program are $8,000 and the variable costs are $5,000. You expect an enrollment of 600 childrenwhat should the cost per child be? Explain your thoughts and calculations.