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Teaching Since: | May 2017 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
A local skating rink charges each person $5 to skate and another $3 for each skate rental. The rink has determined that on a daily basis, when 100 tickets are sold, the costs per skater are $.50 for variable costs and $1 for fixed costs. The rink has the capacity for up to 175 skaters per day.
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A local kid's day camp has asked the rink to allow 35 children to skate for only $2.50 each on July 15, 2007. This price would include the cost of a skate rental as well as admission. During July, the rink averages 100 skaters a day, so they do have the capacity to accept this order if they wish.
Question: If the rink accepts this special order, net income for the day will increase by
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