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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 $20,000,000 for the golfing season. About 450,000 golfers are expected each year. Variable costs are about $17 per golfer. Mountaintop golf course has a favorable reputation in the area and therefore, has some control over the price of a round of golf. Using a cost-plus approach, what price should Mountaintop charge for a round of golf? O A. $61.44 O B. $17.00 O c. $119.47 OD. $74.24
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