Burr Hill golf course is planning for the

coming season. Investors would like to earn a $10\%$ return on the company's $$50$

million of assets. The company primarily incurs fixed costs to groom the greens

and fairways. Fixed costs are projected to be $$25$ million for the golfing

season. About $500,000$ golfers are expected each year. Variable costs are about

$$10$ per golfer. The Burr Hill course has a favourable reputation in the area

and therefore, has some control over the price of a round of golf.

What are Burr Hill's total costs?

$*$

$2$ points

What is Burr Hill's target revenue?

$*$

$2$ points

What will Burr Hill's revenue be at a market price of $$65/$round$?$

$*$

$2$ points

What will Burr Hill's expected profit shortfall be if it charges $$65/$round$?$

$*$

$3$ points