Answer:
a) (480-320)X - 192,000
where:
X is the camper amount which is an integer between;
0 < X <200
b) it will require 1,200 over the course of 12 weeks
c) operating gain of 115,200
d) marginal cost at 80% capacity: 320
average cost: 420 per camper per week
Explanation:
b) contribution per camper:
480 - 320 = 160 dollars
fixed cost 192,000
192,000 / 160 = 1,200 campers
c) at 80% capacity:
200 camper x 12 weeks x 80% x 160 contribution =
307.200 contribution
<u> - 192,000 </u>fixed cost
115,200 operating gain
d) the marginal cost per camper would be the 320 cost per week as the fixed cost are incurrent already thus, each new camper cost is only their variable cost.
the average cost per camper will be:
200 camper x 12 weeks x 80% = 1,920 campers
the average cost would be the sum of variable and fixed cost:
(1,920 x 320 + 192,000) / 1,920 = <em>420</em>
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we cna verify this:
(480 - 420) x 1,920 = 115.200
we get the same income as before thus, the calculation are correct.
