Answered step by step
Verified Expert Solution
Question
1 Approved Answer
15. Philadelphia Swim Club is planning for the coming year. Investors would like to earn a 10% return on the company's $39,000,000 of assets. The
15.
Philadelphia Swim Club is planning for the coming year. Investors would like to earn a 10% return on the company's $39,000,000 of assets. The company primarily incurs fixed costs to maintain the swimming pools. Fixed costs are projected to be $12,500,000 for the year. About 520,000 members are expected to swim each year. Variable costs are about $15 per swimmer. Philadelphia Swim Club is a price-taker and won't be able to charge more than its competitors who charge $41 for a membership. What profit will it earn as a percent of assets? O A. Profit of 2.62% O B. Loss of 2.62% O C. Loss of 52.05% OD. Profit of 32.05% Curvy Confections is considering building a new plant in Europe. It predicts sales at the new plant to be 36,000 units at $8.00/unit. Below is a listing of estimated expenses: Category Materials Total Annual Expenses $10,000 $20,000 $45,000 $25,000 % of Annual Expense that are Fixed 10% 20% 30% 50% Labor Overhead Marketing/Admin A European firm was contracted to sell the product and will receive a commission of 20% of the sales price. No U.S. home office expenses will be allocated to the new facility. (Round intermediary dollar calculations to the nearest whole dollar and round percentages to one-tenth percent.) The margin of safety percentage for Curvy Confections is O A. 88.8% OB. 56%. O C. 119.2%. OD. 10.8%Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started