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Gibson Camps, Inc. leases the land on which it builds camp sites. Gibson is considering opening a new site on land that requires $5,250 of
Gibson Camps, Inc. leases the land on which it builds camp sites. Gibson is considering opening a new site on land that requires $5,250 of rental payment per month. The variable cost of providing service is expected to be $7 per camper. The following chart shows the number of campers Gibson expects for the first year of operation of the new site: Jan. 430 Mar. Aug. Feb. 400 Sept. Apr 530 July 860 510 May 790 June 670 Oct. 540 Nov. 410 Dec. 480 Total 7,000 820 560 Required Assuming that Gibson wants to earn $7 per camper. Management also desires to keep their pricing consistent (i.e. the same) throughout the year to avoid customer confusion within published marketing materials. Determine the price it should charge for a camp site in both February and August. (Do not round intermediate calculations.) Price February August
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