having issues with 34

t goll. The Burr Hill golf course has a favorable reputation in the area and therefore, has some Vable 8osts are about $10 per round control over the price of a round of golf. Using a cost-plus approach, what price should Burr Hi charge for a round of ll golf? A) $50 B) $60 C) $80 D) $70 39 Burr Hill golf cou rse is planning for the coming season. Investors would like to earn a 10% return on the company's $50,000,000 of assets. The compa greens and fairways. Fixed costs are projected to be $25,000,000 for the golfing season. About ny primarily incurs fixed costs to groom the 500,000 of golf. The Burr Hill golf course is a price-taker and won't be able to charge more than its competitors, who charge $65 per round of golf. What profit will it earn in terms of dollars? rounds of golf are expected to be played each year. Variable costs are about $10 per round A) $32,500,000 B) $25,000,000 C) $30,000,000 D) $2,500,000 34) Maxi Production is a price-taker. They produce large spools of electrical wire in a highly o competitive market, and so they practice target pricing. The current market price is $800 per unit. The company has $2,000,000 in assets and shareholders expect a retum of 5% on assets. The company provides the following information: Market 90,000 Units per yearl ro Sales volume Variable costs Fixed costs $680 $12,000,000 Per unit u er year Currently the cost structure is such that the company cannot achieve its profit objective and must cut costs. If fixed costs cannot be reduced, how much reduction in total variable costs will be needed to achieve the profit target? A) Reduce variable costs by $1,200,000 C) Reduce variable costs by $1,300,000 B) Reduce variable costs by $990,000 D) Reduce variable costs by $1,050,000 35) The Squash Company has 5,500 machine hours available annually to manufacture racquets. The following information is available for the two different racquets produced by Squash: Pro Unit sales price Unit variable costs Annual demand Machine time Mid $200 $120 2,000 units 2 hours per unit