Question

tueens College is planning a golf outing at one of the local golf courses to raise money for cholarships. Queens College has two options for the golf outing: OPTION 1: Kissena Park Golf Course a. Fixed cost- $5,000. b. Variable cost- $30 per golfer. OPTION 2: Clearview Golf Course a. Fixed cost- $4,000. b. Variable cost- $35 per golfer. The Green Fee (selling price) paid by each golfer in order to participate in the golf outing is expected to be $50 per golfer. How many golfers will be attend the golf outing at the point of indifference? A. 600 golfers B. 300 golfers C. 500 golfers D. 200 golfers E. 400 golfers

Answer 1

To find the number of golfers at the point of indifference between two golf courses, one must equate the total cost equations of hosting the golf outing at each course and solve for the number of golfers.

Step-by-step explanation:

The point of indifference is when the total cost for hosting the golf outing at both golf courses is the same. The total cost for each option can be expressed by a cost-equation that includes both the fixed and variable costs. For Kissena Park Golf Course (Option 1), the equation is C1 = $5,000 + $30x, where C1 is the total cost and x is the number of golfers. For Clearview Golf Course (Option 2), the equation is C2 = $4,000 + $35x. To find the point of indifference, we can set the two equations equal to each other because at that point, C1 = C2: $5,000 + $30x = $4,000 + $35x. Solving for x will give the number of golfers at the point of indifference.