Question
Perez Camps, Inc. leases the land on which it builds camp sites. Perez is considering opening a new site on land that requires $4,800 of
Perez Camps, Inc. leases the land on which it builds camp sites. Perez is considering opening a new site on land that requires $4,800 of rental payment per month. The variable cost of providing service is expected to be $4 per camper. The following chart shows the number of campers Perez expects for the first year of operation of the new site:
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
370 370 380 400 700 640 780 790 480 510 530 450 Total- 6,400
Required:
Assuming that Perez 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.)
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