Camp Gordon Has Annual Fixed Operating Costs of $150,000 and Variable

question 52

Multiple Choice

Camp Gordon has annual fixed operating costs of $150,000 and variable costs of $550 per camper.Total fees charged to campers amount to $500 each.The camp expects 350 campers next summer.Projected government grants are $95,000.How much must Camp Gordon raise from other sources to break even?

• A) $45,000
• B) $37,500
• C) $97,500
• D) $72,500

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Definitions:

Combine

To combine is to join or merge two or more elements into a single unit or group.

Simplify

The process of altering an expression into its most basic form or notation.

Combine

The act of merging elements in various contexts, especially in algebra where terms are added or multiplied.