Mountain Camps, Incorporated, leases the land on which it builds camp sites. Mountain 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 Mountain expects for the first year of operation of the new site: January February March April May June July August September October November December Total 120 250 200 200 300 500 650 650 350 380 100 300 4,000 Required Assuming that Mountain wants to earn $5.50 per camper, determine the price it should charge for a camp site in February and August. Note: Do not round intermediate calculations.
Mountain Camps, Incorporated, leases the land on which it builds camp sites. Mountain 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 Mountain expects for the first year of operation of the new site: January February March April May June July August September October November December Total 120 250 200 200 300 500 650 650 350 380 100 300 4,000 Required Assuming that Mountain wants to earn $5.50 per camper, determine the price it should charge for a camp site in February and August. Note: Do not round intermediate calculations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mountain Camps, Incorporated, leases the land on which it builds camp sites. Mountain 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 Mountain expects for the first year of operation of the new site:
| January | February | March | April | May | June | July | August | September | October | November | December | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 120 | 250 | 200 | 200 | 300 | 500 | 650 | 650 | 350 | 380 | 100 | 300 | 4,000 |
Required
Assuming that Mountain wants to earn $5.50 per camper, determine the price it should charge for a camp site in February and August.
Note: Do not round intermediate calculations.
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