Question

Question 6 1 pts Based on the Baseball camp example covered in the class, let's assume the segment size is 6000, 2% of the the segment participate the camp, frequency is 1, variable cost per person is $4, TFC = $12,000, and price per person is unknown. Based on the assumption provided above, if the program wants to make $2400 profit, how much should they charge to each participant? O about $114 about $118 about $124 O about $130 o I 6:58 PM 7/10/2020

Answer 1

Answer: Option 3

Solution:

Profit = Revenue - Cost

Step 1:

Revenue = number of participants * price per person

Number of participants = 2% of 6000 = 120

Let x be the price per person

Step 2:

Cost = Total fixed cost + (Varible cost * number of particpants0

Cost = 12,000 + (4*120)

Cost = 12,480

Step 3:

Based on given details

2400 = 120x - 12,480

120x = 2400 + 12,480

120x = 14,880

x = 124