Question
Exercise 2-15A Averaging costs LO 2-5 Venture Camps, Inc., leases the land on which it builds camp sites. Venture is considering opening a new site
Exercise 2-15A Averaging costs LO 2-5
Venture Camps, Inc., leases the land on which it builds camp sites. Venture is considering opening a new site on land that requires $2,300 of rental payment per month. The variable cost of providing service is expected to be $4 per camper. The following chart shows the number of campers Venture expects for the first year of operation of the new site: |
Jan. | Feb. | Mar. | Apr. | May | June | July | Aug. | Sept. | Oct. | Nov. | Dec. | Total |
190 | 280 | 250 | 230 | 390 | 530 | 680 | 680 | 380 | 410 | 250 | 330 | 4,600 |
Required:
Assuming that Venture wants to earn $6 per camper, determine the price it should charge for a camp site in February and August.
deadline= hour, 10pm central standard time
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