Ask Question
BusinessBusiness
16 July, 21:14

Thornton Camps, Inc. leases the land on which it builds camp sites. Thornton is considering opening a new site on land that requires $2,800 of rental payment per month. The variable cost of providing service is expected to be $6 per camper. The following chart shows the number of campers Thornton expects for the first year of operation of the new site.

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Total

290 330 340 360 580 600 740 750 440 470 290 410 5,600

Required:

1. Assuming that Thornton wants to earn $6 per camper, determine the price it should charge for a camp site in February and August. (Do not round intermediate calculations.)

+3
Answers (1)
  1. 16 July, 21:37
    0
    The Answers are:

    In February, Thorton should charge $6,760

    In August, Thorton should charge $11,800

    Explanation:

    Before I take the solutions for each individual month (February and August), We are going to identify the costs used to run each of the camp site for each month, because this will form the base cost which will be added to the amount earned per camper. These costs include:

    1. rental payment per month

    2. variable service cost of $6 per camper, and the total cost here is multiplying this amount ($6) by the total number of campers.

    After this, we will multiply the amount earned per camper by the number of campers for to get the total amount on all campers for that month.

    Finally The total amount earned on the monthly campers are added to the base costs described above.

    Now, Let me take the solution of each month one after the other.

    February (330 campers)

    1. Rental cost per month = $2,800

    2. Total variable service cost on campers = 6 * 330 campers = $1,980

    3. Total amount earned on the campers = 6 * 330 = $1,980

    Amount to be charged on the land in February = $2,800 + $1,980 + $1,980 = $6,760

    For the month of August (750 campers)

    1. Rental cost per month = $2,800

    2. Total variable service cost on campers = 6 * 750 campers = $4,500

    3. Total amount earned on the campers = 6 * 750 = $4,500

    Amount to be charged on the land in August = $2,800 + $4,500 + $4,500 = $11,800
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Thornton Camps, Inc. leases the land on which it builds camp sites. Thornton is considering opening a new site on land that requires $2,800 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Based on the following information from Schrute Company's balance sheet, calculate the current ratio. Current assets $ 102,000 Investments 53,000 Plant assets 300,000 Current liabilities 44,000 Long-term liabilities 95,000 Retained earnings 316,000
Answers (1)
The norm of reciprocity select one: a. suggests that when we receive something from another person we should respond in the future with a favor for them. b. plays only a nominal role in negotiations. c. applies only to favors of the same size. d.
Answers (1)
What is a sales quota? Group of answer choices money that a sales person earns for closing a sale for the company a number of units sold the amount of sales that an individual sales person or group of sales people is expected to make within a
Answers (1)
On the island of Mabera, the local money is called "favoli." The price of every good in Mabera is expressed as the number of favolis needed to buy the good. The use of favolis to express the price of goods describes which function of money?
Answers (2)
Consider the following data that identifies real gross domestic product (GDP) in comparison to the long-run trend of real GDP to answer the following questions: Quarter Real GDP Long-Run Trend of Real GDP (billions of dollars) (billions of dollars)
Answers (1)
New Questions in Business
The culture of UPS places service to the customer among the company's highest business objectives, which is reflected in their use of information systems to enable customer tracking of their packages.
Answers (1)
Employers bond employees who handle cash receipts because fidelity bonds reduce the possibility of employing dishonest individuals and Deter dishonesty by making employees aware that insurance companies may investigate and prosecute dishonest acts.
Answers (1)
1. A complaint of sexual harassment by a part-time worker in a hardware business was upheld when the Tribunal found that the employer had failed to take sufficient action in relation to the employee's report of inappropriate behaviour.
Answers (1)
Suppose that the government sets a price floor for milk that is above the competitive equilibrium price With the price floor, consumers are willing to purchase the quantity indicated where the price floor intersects the With the price floor, the
Answers (1)
Choose the best revision of the previous sentence. Because many executives have access to company jets boards of directors have a responsibility to ensure that shareholders are not footing the bill for personal travel.
Answers (1)
Home » Business » Thornton Camps, Inc. leases the land on which it builds camp sites. Thornton is considering opening a new site on land that requires $2,800 of rental payment per month. The variable cost of providing service is expected to be $6 per camper.
Sign Up Forgot Password?