Determine the price it should charge for a camp site

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Question - Benson Camps, Inc. leases the land on which it builds camp sites. Benson is considering opening a new site on land that requires $2,600 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 Benson expects for the first year of operation of the new site:

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Total

250

310

310

260

480

560

710

710

410

440

400

360

5,200

Required - Assuming that Benson wants to earn $10 per camper, determine the price it should charge for a camp site in February and August.

Reference no: EM133111871

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