Camp Gordon Has Annual Fixed Operating Costs of £150,000 and Variable

Multiple Choice

Camp Gordon has annual fixed operating costs of £150,000 and variable cost of £550 per camper. Total fees charged to campers amount to £500 each. The camp expects 350 campers next summer. Projected government grants are £95,000. How much must Camp Gordon raise from other sources to break even?

A) £45,000
B) £37,500
C) £97,500
D) £72,500