Posted by **cindy** on Monday, February 9, 2009 at 10:18am.

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

- financial mgmt -
**drwls**, Monday, February 9, 2009 at 10:41am
Let N be the number of members. The annual revenue from memberships will be

(0.75N)x150 + (0.25N)x300 = 187.5 N

Add up the annual costs, which look to me like

295,000 + 50 N,

set that equal to 187.5 N and solve for N. That will give you the break-even value of N.

## Answer This Question

## Related Questions

- financial mgmt - Ettenheim village is considering building a town swimming pool...
- English - I am writing an essay about the swimming pool in the Great Gatsby, but...
- Econ - A firm is considering locating a 100 employee microprocessor production ...
- physics - 6. Cleo and Clare are looking from their balcony to a swimming pool ...
- chemistry - The average swimming pool has a volume of about 28,000 gallons. ...
- physic pls help - Cleo and Clare are looking from their balcony to a swimming ...
- Algebra - HELP!!! Super confused. Here's the problem. Today while Don was ...
- Math - Freshman math question, super confused! Today while Don was swimming, he ...
- business - You have just started work for a small company, FitCo, that develops ...
- Business - You have just started work for a small company, FitCo, that develops ...

More Related Questions