Question
Jerry is considering offering a luxury escape from civilization at $900 per person. It would cost him $4210/week to rent a remote luxury resort for
Jerry is considering offering a luxury escape from civilization at $900 per person. It would cost him $4210/week to rent a remote luxury resort for a week (that can hold up to 40 people) and $850 for each jeep he rents as this property cannot be reached by normal road vehicles. However, a jeep can accommodate at most 6 people.
Food and other variable costs will run $250 per person. How many paying clients would Jeremiah need to break even for the luxury resort trip with 2 jeeps? If there is no way this trip could ever be profitable as configured, put 0 in for your answer.
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Cost Accounting Foundations and Evolutions
Authors: Michael R. Kinney, Cecily A. Raiborn
8th Edition
9781439044612, 1439044619, 978-1111626822
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