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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 $49,000,000 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 $49,000,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $24,000,000 for the golfing season. About 400,000 golfers are expected each year. Variable costs are about $16 per golfer. The Mountaintop golf course is a price-taker and won't be able to charge more than its competitors who charge $85 per round of golf. What profit will it earn in terms of dollars? O A. $3,600,000 O B. $(3,600,000) O c. $16,400,000 O D. $(24,000,000)
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