Please someone help me with this.Problem on top questios in the bottom. 2-15 A p

Question

Please someone help me with this.Problem on top questios in the bottom.

2-15 A privately owned summer camp for youngsters has the following data for a 12-week session: Charge per camper $480 per week Fixed costs $192,000 per session Variable cost per camper $320 per week Capacity 200 campers (a) 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 break even? (c) What is the profit or loss for the 12-week session if the camp operates at 80% capacity? (d) What are marginal and average costs per camper at 80% capacity?

Explanation / Answer

1. Total costs = 192000 +320 *12 *X, Total Revenue = $480 *12 * X, let X be no of campers

2. total No. of camper should be

192000 +320*12*X = 480*12*X

So, breakeven = 192000 /1920 = 100 campers

3. If camp operate at 80% capacity means = 200*80% = 160 Campers

Profit = 480*12*160 - (192000 + 320*12*160) = $ 921600 - 806400 = $ 115200

4. Average Cost = 192000 + 320*12*160 ) / 160 = $ 5040

Marginal Cost = (192000+ 320*12*161) - 806400 = $3840

Thankyou :0

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