Mountaintop golf course is planning for the coming season. Investors would like to earn a12% return on thecompany's $47,000,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be$20,000,000 for the golfing season. About440,000 golfers are expected each year. Variable costs are about$17 per golfer. Mountaintop golf course has a favorable reputation in the area andtherefore, has some control over the price of a round of golf. Using a costplus approach, what price should Mountaintop charge for a round ofgolf?

A.

$119.64

B.

$17

C.

$75.27

D.

$62.45