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Mountaintop golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $50,000,000 of assets. The company
Mountaintop golf course is planning for the coming season. Investors would like to earn 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 $20,000,000 for th golfing season. About 440,000 golfers are expected each year. Variable costs are about $15 per golfer. The Mountaintop golf course is a price -taker and won't be able to charge more than its competitors who charge $103 per round of golf. What profit will it earn in terms of dollars? O A. $31,920,000 O B. $(18,720,000) O C. $(20,000,000) O D. $18,720,000
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