Variety of summer recreation alternatives

Assignment Help Financial Management

Reference no: EM131825301

Millbridge Township provides a variety of summer recreation alternatives. You can belong to the town pool, play tennis or play golf. Summer passes allowing residents to use these facilities are sold each year. Twenty-five percent of the season passes that are purchased are golf passes, 35 percent are for tennis, and the rest are for the pool. The golf passes are $30, the tennis passes are $50, and the pool passes are $70. The cost of providing these services is mostly fixed, with a $3 variable cost per pass, regardless of type. The fixed cost of operating the summer recreational program is $250,000. How many people must buy recreational passes for the town to break even? How many passes would be sold for the pool at that break-even volume?

Reference no: EM131825301

Questions Cloud

Benefit cost analysis-present value of stream of payments : Benefit Cost Analysis-Calculate the present value of this stream of payments using a range of interest rates ranging, say, from 0% to 20%.

What is the discount margin for the floater in basis points : What is the discount margin for the floater in basis points?

Moving average smoothing methods produce the best forecasts : With which type of time series data should moving average smoothing methods produce the best forecasts

Current market values of dietrich equity and debt : What are the current market values of Dietrich's equity and debt? What are the current market values of Steinberg's equity and debt?

Variety of summer recreation alternatives : Millbridge Township provides a variety of summer recreation alternatives. How many passes would be sold for the pool at that break-even volume?

Which means hiring new people and delegating tasks : She is now considering expanding the business, which means hiring new people and delegating tasks.

Developing new iphone application : Take Five Systems, a new start-up, is developing a new iPhone application (“app”) and provides you with the following assumptions:

What is the equity value and the debt-to-value ratio : What is the equity value and the debt-to-value ratio if the company's growth rate is 5 percent?

What is the future value of five year ordinary annuity : What is the future value of a 5-year ordinary annuity with annual payments of $100, evaluated at a 5 percent interest rate?

User Account

All Pages