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Munoz Camps, Inc. leases the land on which it builds camp sites. Munoz is considering opening a new site on land that requires $4,350 of
Munoz Camps, Inc. leases the land on which it builds camp sites. Munoz is considering opening a new site on land that requires $4,350 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 Munoz expects for the first year of operation of the new site:
Assuming that Munoz wants to earn $9 per camper, determine the price it should charge for a camp site in February and August. (Do not round intermediate calculations.)
Jan. | Feb. | Mar. | Apr. | May | June | July | Aug. | Sept. | Oct. | Nov. | Dec. | Total |
310 | 340 | 350 | 370 | 610 | 610 | 750 | 760 | 450 | 480 | 350 | 420 | 5,800 |
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