Engineering Economic Analysis

42 ENGINEERINGCOSTSAND COST ESTIMATING

· Each cabin at the camp holds 4 campers, and rent is $10 per day per cabin.

·Meals are $10 per day per camper; no outside food is allowed.

· Boat transportation to the island is $2 per camper (one way).

·Insurance/grounds fee/overhead is $fpetday.per camper.

· Canoe rentals are $5 per day per canoe, canoes hold 3 campers.

· Day hikes are $2.50 per camper (plus the cost for meals).

· Beach rental is $25 per group per half-day.

· Nightly entertainment is free.

You are asked to use the per unit factpr to estimate the cosfperstudent ontJ:1istrip. Forplanning

purppses we assume that there will be 100% participation in all actiyities.We will break the total

cost down into categories of transportation, living, and entertainment.

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Transportation Costs

Van travel to and from,camp: 2 vans x :2trips x ($50/van + 50 ]:Iples x 1 gal/lOmiles x ~ ",".

$lIgal)=$220 .; ~.~,~ ;; ~~ :::;' ::;: ;; :;=

Boat travelto andfrom island:2 trips...x$2lcamperx 24 c~pers .$96

Transportation costs =~20+ 96 =-$316

Living Costs

Mealsfor the lO-day period: 24 campers x $10/cainper/day x 10 days $2400

Cabin rentalfor the lO-day period.~24 campers x 1. capinl4 carIlperS x$10/day/cabin. x

10 days-.$600

lnsurance/Overhad expensefor the lO-dtiyperiod: 24 campers x $1/day/ca1DJ>erx 10 days

=$240

Living costs =2400 +.600+ 240=.$.~Z40

• Entertfiinment Costs

Canoe rental costs:'2 canoe days x 24calllpeJ,"s xf canoe/3 c~per$ x$5/day/canoe

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Beach rental costs: 3 days)( 2 ha.lf-days/dayx$25!b;iU'.,day..l$150

Day hike costs:.24 campers x3 dayl1jJ.(e$x$2.50/C;iIp.per/dayhilte ...$18Q

Nightly entertainment:This is free! Can you believe it?

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