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Assume you are running a music or art camp that has the following costs: Annual fixed costs pro-rated for this camp: taxes, interest charges, physical
Assume you are running a music or art camp that has the following costs: Annual fixed costs pro-rated for this camp: taxes, interest charges, physical property, insurance, building maintenance, etc. $100,000 Variable cost for each attendee: food, supplies, etc. $500 You consider the following prices per attendee: $1,000, $800,S675. In the past, you've charged $675, but want to explore other pricing options. What is the break-even number of registrations for each of these prices? [Break-even volume = fixed cost / (price - variable cost)] 1. $1,000 Break-even point = registrations (Round to nearest whole number.) 2. $800 Break-even point registrations (Round to nearest whole number.) 3. $675 Break-even point registrations (Round to nearest whole number.) If the camp had to move to a location that can accommodate only 400 attendees, what is the price that should be charged in order to break even
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