Millbridge township provides a variety of summer recreation


Millbridge Township provides a variety of summer recreation alternatives. You can belong to the town pool, play tennis or play golf. Summer passes allowing residents to use these facilities are sold each year. Twenty-five percent of the season passes that are purchased are golf passes, 35 percent are for tennis, and the rest are for the pool. The golf passes are $30, the tennis passes are $50, and the pool passes are $70. The cost of providing these services is mostly fixed, with a $3 variable cost per pass, regardless of type. The fixed cost of operating the summer recreational program is $250,000. How many people must buy recreational passes for the town to break even? How many passes would be sold for the pool at that break-even volume?

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Financial Management: Millbridge township provides a variety of summer recreation
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