Question
Venture Camps, Inc., leases the land on which it builds camp sites. Venture is considering opening a new site on land that requires $2,500 of
Venture Camps, Inc., leases the land on which it builds camp sites. Venture 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 Venture 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 Venture 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.)
I got $21.50 for Feb and $15.50 for Aug which is apparently incorrect even though I did the math: $21.50 x 250 = 53750 - 2500 = 2875 6*250 = - 1500 = 1375 / 250 = 5.5
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