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Mountaintop golf course is planning for the coming season. Investors would like to eam a 12% return on the company's $46,000,000 of assets. The
Mountaintop golf course is planning for the coming season. Investors would like to eam a 12% return on the company's $46,000,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $22,000,000 for the golfing season. About 420,000 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 $85 per round of golf. What profit will it eam in terms of dollars? OA. $7,400,000 OB. $20,000,000 Oc. $(22,000,000) OD. $(7,400,000)
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