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Mountaintop golf course is planning for the coming season. Investors would like to earn a 1 2 % return on the company's $ 4 7

Mountaintop golf course is planning for the coming season. Investors would like to earn
a 12% return on the company's $47,000,000 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 $17
per golfer. The Mountaintop golf course is a price - taker and won't be able to charge more
than its competitors who charge $79 per round of golf. What profit will it earn in terms
of dollars?
A. $4,040,000
B. $18,320,000
C. $(22,000,000)
D. $(4,040,000)
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