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Vernon Camps, Inc. leases the land on which it builds camp sites. Vernon is considering opening a new site on land that requires $2,700
Vernon Camps, Inc. leases the land on which it builds camp sites. Vernon is considering opening a new site on land that requires $2,700 of rental payment per month. The variable cost of providing service is expected to be $5 per camper. The following chart shows the number of campers Vernon expects for the first year of operation of the new site: Jan. 270 Feb. 320 Mar. 330 Apr. 350 May 550 June 590 July 730 Aug. Sept. 740 430 Oct. 460 Nov. 230 Dec. 400 Total 5,400 Required Assuming that Vernon wants to earn $6 per camper, determine the price it should charge for a camp site in February and August. (Do not round intermediate calculations.) Answer is complete but not entirely correct. Price February $6,220 $ August 10,840
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