3) A privately-owned summer camp for youngsters has the following data for a 12-week session: Charge per camper: $480 Fixed costs: $192,000 per session Variable cost per camper: $320 per week Capacity: 200 campers a- What are the marginal and average costs per camper at 80% capacity? b- Would it be ethical to charge campers different rates depending on their family's socioeconomic status? Identify and describe two points pro and two points cons for such a policy. c- Draw cash flow diagram for this problem. per week
3) A privately-owned summer camp for youngsters has the following data for a 12-week session: Charge per camper: $480 Fixed costs: $192,000 per session Variable cost per camper: $320 per week Capacity: 200 campers a- What are the marginal and average costs per camper at 80% capacity? b- Would it be ethical to charge campers different rates depending on their family's socioeconomic status? Identify and describe two points pro and two points cons for such a policy. c- Draw cash flow diagram for this problem. per week
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 3.4CE
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Question
![3) A privately-owned summer camp for youngsters has the following data for a 12-week
session:
Charge per camper:
Fixed costs: $192,000 per session
Variable cost per camper:
Capacity: 200 campers
a- What are the marginal and average costs per camper at 80% capacity?
b- Would it be ethical to charge campers different rates depending on their family's
socioeconomic status? Identify and describe two points pro and two points cons
for such a policy.
c- Draw cash flow diagram for this problem.
$480
per
week
$320
per
week](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe801909c-59c9-4b6d-8f92-02e1e3a7b70b%2F5675ca25-7707-44eb-b3b2-65c40a2d05a5%2Fnxesf69_processed.png&w=3840&q=75)
Transcribed Image Text:3) A privately-owned summer camp for youngsters has the following data for a 12-week
session:
Charge per camper:
Fixed costs: $192,000 per session
Variable cost per camper:
Capacity: 200 campers
a- What are the marginal and average costs per camper at 80% capacity?
b- Would it be ethical to charge campers different rates depending on their family's
socioeconomic status? Identify and describe two points pro and two points cons
for such a policy.
c- Draw cash flow diagram for this problem.
$480
per
week
$320
per
week
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