Question
Mountaintop golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $48,000,000 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 $48,000,000 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 410,000 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 $102 per round of golf. What profit will it earn in terms of dollars?
$(14,670,000) = A | ||
$26,970,000 = B | ||
$(21,000,000) = C | ||
$14,670,000 =D |
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