Benson Camps, Inc. leases the land on which it builds camp sites. Benson is considering opening a new site on land that requires $4,000 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 Benson expects for the first year of operation of the new site: Jan. 530 Feb. 450 February August Mar. Apr. May June 560 580 940 720 July Aug. 910 870 Price Sept. 610 Oct. 590 Nov. 710 Dec. 530 Required Assuming that Benson wants to earn $7 per camper, determine the price it should charge for a camp site in February and August. (Do not round Intermediate calculations.) Total 8,000
Benson Camps, Inc. leases the land on which it builds camp sites. Benson is considering opening a new site on land that requires $4,000 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 Benson expects for the first year of operation of the new site: Jan. 530 Feb. 450 February August Mar. Apr. May June 560 580 940 720 July Aug. 910 870 Price Sept. 610 Oct. 590 Nov. 710 Dec. 530 Required Assuming that Benson wants to earn $7 per camper, determine the price it should charge for a camp site in February and August. (Do not round Intermediate calculations.) Total 8,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Benson Camps, Inc. leases the land on which it builds camp sites. Benson is considering opening a new site on land that requires
$4,000 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 Benson expects for the first year of operation of the new site:
Jan.
530
Feb.
450
February
August
Mar. Apr. May June July Aug.
560
580
940
720
910
870
Sept. Oct.
590
610
Price
Nov.
710
Dec.
530
Required
Assuming that Benson wants to earn $7 per camper, determine the price it should charge for a camp site in February and August. (Do
not round Intermediate calculations.)
Total
8,000
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