May 29, 2016

Homework Help: financial mgmt

Posted by cindy on Friday, February 6, 2009 at 2:20pm.

Ettenheim village is considering building a town swimming pool. The annual facility cost would be $200,000. Staff salaries for the pool, which would only be open during the summer would be $75,000. Other fixed cost would be $20,000 a year. There are other expenses of $50 per person per season.

Marketing studies suggest that the village residents would be willing to spend $150 a year for an individual membership and $300 for family membership. On average families in the village have 3 people. How many members will have to join each year to make the pool cover its cost. Assume that 75% of the memberships are family memberships.

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