Q.4

Mountain Camps, Inc. leases the land on which it builds camp sites. Mountain is considering opening a new site on land that requires $2,500 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 Mountain expects for the first year of operation of the new site:

Jan.	Feb.	Mar.	Apr.	May	June	July	Aug.	Sept.	Oct.	Nov.	Dec.	Total
120	250	200	200	300	500	650	650	350	380	100	300	4,000

Required

Assuming that Mountain wants to earn $5.50 per camper, determine the price it should charge for a camp site in February and August. (Do not round intermediate calculations.)

Price February August