Averaging costs Sparta Camps, Inc., leases the land on which it builds camp sites. Sparta is cons

Averaging costs Sparta Camps, Inc., leases the land on which it builds camp sites. Sparta is considering opening a new site on land that requires $2,000 of rental payment per month. The variable cost of providing service is expected to be $4 per camper. The following chart shows the number of campers Sparta expects for the first year of operation of the new site.

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Total

200

100

300

300

400

600

800

800

500

300

200

300

4,800

Required

Assuming that Sparta wants to earn $10 per camper, determine the price it should charge for a camp site in February and August.

 

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