Breakeven analysis:
Clifftown’s Parks and Recreation Department Clifftown’s Parks and Recreation Department is introducing a new summer day camp for children in elementary school, providing programming from 8:00 a.m. to 5:00 p.m. Monday through Friday. The proposed day camp program is 10 weeks long and is planned for 100 children. Fixed costs include staff, equipment, and facilities costs, and the total fixed cost is estimated at $15,000 for the 10 weeks. The camp will serve lunch and snacks each weekday at a weekly cost of $15 per child. How much should the Parks and Recreation Department charge per child for the program to break even? In Clifftown, the parks and recreation director learns that his department has received a grant that can cover 50% of the fixed costs of the new summer day camp. How does this reduction in the total fixed cost change the break even price? Clifftown Catering Company (CCC) has contacted the parks and recreation director about serving meals at the camp. CCC will provide snacks and lunches for all the campers each week for $8 per camper per week, in exchange for hanging a CCC banner at the camp and having CCC brochures made available. If the Parks and Recreation Department agrees to this arrangement and takes advantage of the grant mentioned in the previous paragraph, what would the new breakeven price be?