A privately-owned summer camp for youngsters has the following data for a12-week session:Charge per camper: $480 per weekFixed costs: $192,000 per sessionVariable cost per camper: $320 per weekСарасity: 200 campersa) Develop the mathematical relationships for total cost and total revenue.b) What is the total number of campers that will allow the camp to just breakeven?c) What if the profit or loss for the 12-week session if the camp operates at 80%сараcity?d) What are the marginal and average costs per camper at 80% capacity?e) Would it be ethical to charge campers different rates depending on their family'ssocioeconomic status? Identify and describe two points pro and two points consfor such a policy.f) Draw cash flow diagram for this problem.

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 11EB: Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month...

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Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month plus a charge for each mile driven. Able Transport drove the tour bus 4,000 miles and paid a total of $1,250 in March. In April, they paid $970 for 3.000 miles. What is the variable cost per mile if Able Transport uses the high-low method to analyze costs?
A publishing company is planning on developing an SPSS Manual for graduatestudents in doctoral programs. The book will cost $16 to produce and will sell for$24; fixed costs will be $160,000. The company estimates that sales will beapproximately 60,000.a) What is the company’s breakeven point?b) Find the estimated profit.
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Excaster University is considering launching a new 12 month taught Masters programme in Data Analytics. In order to offer the programme the University will incur the following fixed costs: a) One full time administrator at an annual cost of £40,000 b) Advertising and promotional costs of £25,000 per year c) Subscriptions to data providers £50,000 per year d) Licenses for analytical software £35,000 per year e) In addition the course will incur an overhead charge for use of shared resources of £45,000 per year. Teaching on the course will be delivered at an estimated cost of £500,000 per year. The variable costs associated with delivering an excellent student experience are estimated at £2000 per student. Bathchester University (about 60 miles away) offers a competitive course priced at £13,000 which attracts 60 students. Plymhampton University (about 30 miles away) also offers a competitive course and charges £9,000 and has recruited 40 students for the most recent intake. Excaster are…
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