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. One quarter 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 recreation program is $ 250,000. How many people must buy recreation passes for the town to break even? How many passes would be sold for the pool at that break- even volume?

  • CreatedDecember 19, 2014
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