How many passes would be sold for the pool

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Question - Sand Point Community Center provides a variety of summer recreation options. A member can belong to the Center's town pool, play tennis, or play golf. Summer passes allowing residents to use these facilities are sold each year. One quarter of the season passes that are purchased are golf passes, 30 percent are for tennis, and the rest are for the pool. The golf passes are $65, the tennis passes are $35, and the pool passes are $100. The cost of providing these services is mostly fixed, with a $5 variable cost per pass, regardless of type. The fixed cost of operating the summer recreation program is $250,000.

1. How many people must buy recreation passes for the center to break even?

2. How many passes would be sold for the pool at that break-even volume?

Reference no: EM133168427

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