Question

You plan to operate a basketball camp during the summer at Duke University. The total number of participants is 200. Camp participants will stay three nights in the university dormitories, and each room will house two camp participants. Duke charges you $40 per room each night. Liability insurance to run the camp will cost $3,000. Meals for the three day camp will cost $6,000. Duke will not charge you for the use of the basketball facility. Nike will provide sporting goods to be used by, and given to, participants. You and your partner each want to make $8,000 profit from running the camp. How much will you have to charge each participant to meet your goal?

Answer 1

$245 per participant

Step-by-step explanation:

total number of participants = 200

total costs for 200 participants:

• $40 per night x 3 nights x 200 = $24,000 for rooms
• $3,000 for insurance
• $6,000 for meals

total costs = $33,000

if you want to earn $16,000 in profits ($8,000 each),

price per participant = ($33,000 + $16,000) / 200 = $49,000 / 200 = $245