This fictional example is a four-day local outdoor camp with daily trips and up to twelve participants. It is not a remote expedition. The qualified operating plan, permit, transport, and participant mix must support the stated capacity.
Fixed costs
| Item | Fictional cost |
|---|---|
| Qualified leaders and camp-care work, including preparation | $3,600 |
| Transport commitment | $1,000 |
| Permits and allocated insurance | $600 |
| Administration | $400 |
| Total fixed costs | $5,600 |
Cost per participant
| Item | Fictional cost |
|---|---|
| Food | $60 |
| Equipment hire or use allocation | $70 |
| Payment and individual booking costs | $20 |
| Drinking-water logistics and consumable supplies | $15 |
| Total variable cost | $165 |
At a $745 fee, contribution is $580. Break-even is $5,600 ÷ $580 = 9.66, rounded up to ten paid places.
| Paid places | Revenue | Total modeled cost | Operating result |
|---|---|---|---|
| 8 | $5,960 | $6,920 | −$960 |
| 10 | $7,450 | $7,250 | $200 |
| 12 | $8,940 | $7,580 | $1,360 |
The ten-person result has little room for extra costs. A $700 unplanned transport charge turns it into a $500 loss. Do not answer that problem by skipping qualified cover or pushing ahead in unsafe conditions.
A remote or residential trip needs a different model with food, nights, communications, support, rescue logistics, and other relevant costs. Do not reuse this local day-trip budget unchanged.
Your task: Price the fallback day and the cancelled day as well as the ideal day.