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help Rocky Pines golf course is planning for the coming season. Investors would like to eam a 12% return on the company's $50,000,000 of assets.
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Rocky Pines golf course is planning for the coming season. Investors would like to eam a 12% return on the company's $50,000,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $21,000,000 for the golfing season. About 400,000 golfers are expected each year. Variable costs are about $20 per golfer. Rocky Pines golf course has a favorabla reputation in the area and therefore, has some control over the price of a round of golf. Using a cost - plus approach, what price should the course charge for a round of golf? (Round the final answer to the nearest cent.) A. $87.50 B. $140.00 C. $20.00 D. $72.50 Step by Step Solution
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