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?

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Quizplus · Accepted Answer

To break even, Camp Gordon needs to cover its total costs. Total costs = Fixed costs + (Variable cost per camper * Number of campers) = $150,000 + ($550 * 350) = $342,500. Total revenue from campers = $500 * 350 = $175,000. With a grant of $95,000, the remaining amount needed is $342,500 - $175,000 - $95,000 = $72,500.

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