Question
Mountaintop golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $ 50000000 of assets. The
Mountaintop golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $ 50000000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $ 24 comma 000 comma 000 for the golfing season. About 410 comma 000 golfers are expected each year. Variable costs are about $ 17 per golfer. The Mountaintop golf course is a priceminustaker and won't be able to charge more than its competitors who charge $ 107 per round of golf. What profit will it earn in terms of dollars?
A. $(12 comma 900 comma 000)
B. $ 26 comma 840 comma 000
C. $(24 comma 000 comma 000)
D. $ 12 comma 900 comma 000
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