how do i find the price?

Question

Exercise 2-15A Averaging Costs L.O. 6

Sparta Camps, Inc., leases the land on which it builds camp sites. Sparta is considering opening a new site on land that requires $3,000 of rental payment per month. The variable cost of providing service is expected to be $4 per camper. The following chart shows the number of campers Sparta expects for the first year of operation of the new site.

Jan. 200, Feb. 150, Mar. 300, Apr. 300, May 300, june 500, july 700, aug 750, sep 450, oct 250, nov 50, dec 250, total 4,200

Assuming that Sparta wants to earn $10 per camper, determine the price it should charge for a camp site in February and August.

Computation of Fixed Cost Per Unit:

Land Cost Per Camper = 2000$ ×12 / 4,100 = 5.85

Price = ?

Sparta Camps, Inc., leases the land on which it builds camp sites. Sparta is considering opening a new site on land that requires $3,000 of rental payment per month. The variable cost of providing service is expected to be $4 per camper. The following chart shows the number of campers Sparta expects for the first year of operation of the new site.

Jan. 200, Feb. 150, Mar. 300, Apr. 300, May 300, june 500, july 700, aug 750, sep 450, oct 250, nov 50, dec 250, total 4,200

Assuming that Sparta wants to earn $10 per camper, determine the price it should charge for a camp site in February and August.

Computation of Fixed Cost Per Unit:

Land Cost Per Camper = 3,000$ ×12 / 4200 = 8.57

Price = ?

Answer 1

Sorry, I can't understand the fixed cost. Shouldn't it be $3,000 a month? Why is it $2,000 and why divided over 4,100?