PLEASE ANSWER QUESTIONS 1-4

DETERMINE THE SUBSIDY RATE FOR ONE HOUR OF POOL TIME FOR EACH OF THE PROGRAMS.ASSUME A 10% CONTINGENCY COST ASSOCIATED WITH THE FACILITY.

P = price

F = fixed costs

V = variable costs

C = contingency costs

N = demand

S = subsidy rate

Unit cost = $149.77

S = negative number if program to make profit

S = 0 if breakeven

S = positive number if subsidized

P = ((F + V + C[F + V])/N) (1 S)

OR

P = Unit cost x (1 S) ** ok to use this one

Programs	Subsidy	Service	Pool cost per hour
Open swim	0%	Public	??? 3.1 ???
Party rental	20%	Private	??? 3.2 ???
Elite swim team	15%	Private	??? 3.3 ???
Lap swim	10%	Merit	??? 3.4 ???

1. Determine the cost for one hour of pool time for the open swim program.

2. Determine the cost for one hour of pool time for the party rental program.

3. Determine the cost for one hour of pool time for the elite swim team program.

4. Determine the cost for one hour of pool time for the lap swim program.