Question
Kidz Gym, a new children's activity center, charges $10 per visit for each child to play. Its variable costs per visit are $2, and its
Kidz Gym, a new children's activity center, charges $10 per visit for each child to play. Its variable costs per visit are $2, and its daily fixed costs are $200. It has a maximum capacity of 200 daily visits and consistently has 160 regular daily visits. In addition to these regular visits, a camp with 50 students offers to visit the center daily for the summer at a price of $400 per day. Kidz Gym will save 20% on its variable costs per visit on these 50 visits. What is the daily net advantage of accepting this special offer from the camp?
$220 | ||
$240 | ||
$300 | ||
$320 |
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