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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 $48,000,000 of assets. The company
Mountaintop golf course is planning for the coming season. Investors would like to eam a 12% return on the company/s $48,000,000 of assets. The company primarity incuirs fred cosits to groom the greens and fairways. Fixed costs are projected to be $20,000,000 for the goifing season. About 440,000 gollers are expected each year. Variable costs are about $19 per golfer. Mountaintop golf course has a favorable reputation in the area and therefore, has some control over the price of a round of goll. Using a cost - plus approach, what price should Mountaintop charge for a round of goir? A. $12218 B. $54.45 C. $1900 D. 577.55
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