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Perez Camps, Inc. leases the land on which it builds camp sites. Perez is considering opening a new site on land that requires $2,450 of
Perez Camps, Inc. leases the land on which it builds camp sites. Perez is considering opening a new site on land that requires $2,450 of rental payment per month. The variable cost of providing service is expected to be $6 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. | Total |
150 | 260 | 210 | 210 | 330 | 510 | 660 | 660 | 360 | 390 | 150 | 310 | 4,200 |
Required
Assuming that Perez wants to earn $7 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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