Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Breakeven analysis: Clifftowns Parks and Recreation Department Clifftowns Parks and Recreation Department is introducing a new summer day camp for children in elementary school, providing

Breakeven analysis:

Clifftowns Parks and Recreation Department Clifftowns Parks and Recreation Department is introducing a new summer day camp for children in elementary school, providing programming from 8:00 a.m. to 5:00 p.m. Monday through Friday. The proposed day camp program is 10 weeks long and is planned for 100 children. Fixed costs include staff, equipment, and facilities costs, and the total fixed cost is estimated at $15,000 for the 10 weeks. The camp will serve lunch and snacks each weekday at a weekly cost of $15 per child. How much should the Parks and Recreation Department charge per child for the program to break even? In Clifftown, the parks and recreation director learns that his department has received a grant that can cover 50% of the fixed costs of the new summer day camp. How does this reduction in the total fixed cost change the breakeven price? Clifftown Catering Company (CCC) has contacted the parks and recreation director about serving meals at the camp. CCC will provide snacks and lunches for all the campers each week for $8 per camper per week, in exchange for hanging a CCC banner at the camp and having CCC brochures made available. If the Parks and Recreation Department agrees to this arrangement and takes advantage of the grant mentioned in the previous paragraph, what would the new breakeven price be?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The ACT Guide To Ethical Conflicts In Finance

Authors: Andreas Prindl, Bimal Prodhan

1st Edition

1855732564, 978-1855732568

More Books

Students also viewed these Finance questions

Question

Repeat Problem 87 for the circuit in Figure. 7V 5V 212 3.

Answered: 1 week ago

Question

What is Entrepreneur?

Answered: 1 week ago

Question

Which period is known as the chalolithic age ?

Answered: 1 week ago

Question

Explain the Neolithic age compared to the paleolithic age ?

Answered: 1 week ago