Question
High Water Camping (HWC) rents spaces for recreational vehicles (RVs) and tent camping by the day. HWC charges $15 per day for a RV space
High Water Camping (HWC) rents spaces for recreational vehicles (RVs) and tent camping by the day. HWC charges $15 per day for a RV space and $6 for a tent space. The variable costs (including cleaning, maintenance, and supplies) are $7 per day for RV space and $3 a day for tent space. HWC rents 9,000 RV spaces per year and 6,000 tent spaces per year. The fixed costs of HDC are $48,000 per year. Assuming the mix of RV and tent spaces is the same as the current mix, how many tent spaces and how many RV spaces must be rented annually for HWC to break even?
A. 4,000 tents and 4,000 RVs
B. 3,200 tents and 4,800 RVs
C. 4,800 tents and 3,200 RVs
D. 40,000 tents and 10,000 RVs
E. none of the above
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