Question
#4 Philadelphia Swim Club is planning for the coming year. Investors would like to earn a 10% return on the company's $ 39 comma 000
#4
Philadelphia Swim Club is planning for the coming year. Investors would like to earn a 10% return on the company's $ 39 comma 000 comma 000 of assets. The company primarily incurs fixed costs to maintain the swimming pools. Fixed costs are projected to be $ 12 comma 600 comma 000 for the year. About 510 comma 000 members are expected to swim each year. Variable costs are about $ 12 per swimmer. Philadelphia Swim Club is a priceminustaker and won't be able to charge more than its competitors who charge $ 42 for a membership. What profit will it earn as a percent of assets?
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