The Tri-Gamma Sorority One-Charge House (HCB) Corporation Board is responsible for the operation of a two-story sorority house on the State University campus. HCB has set a normal capacity of 60 women. At any given time, there are 100 chapter members: 60 living in the house and 40 living elsewhere (for example, in freshman dorms on campus). HCB needs to set rates for the use of the house for the next year. The following costs are budgeted: $240,000 fixed and $34,800 variable. Fixed costs are quite insensitive to the number of women living in the house. Food is budgeted at $40,000 and is included in the fixed costs; the food doesn't seem to vary much given the stated capacity. Variable expenses consist of phone bills and some of the utilities. HCB is not responsible for chapter dues, party dues, pledge and initiation fees and other social expenses. The women who live in the house eat 20 meals a week there and live in a room for two people. (All internal members' rooms, bathrooms, etc., are on the second floor.) All members eat Monday dinner at the house and have full use of the house facilities (eg the two TV rooms, kitchens, access to milk). and cereal at any time, study facilities, etc.). HCB has traditionally established two rates: one for internal members and one for external members. There are 32 weeks in a school year.

 Mandatory:

 Establish collection rates for internal and external members. For provisional computations, take the amounts to the nearest cent. Round your final answers to the nearest dollar. Charge rate Internal members $ per year External members $ per year

Answer rating: 100% (QA)

To establish collection rates for internal and external members we need to consider the fixed and va... View the full answer