Mountaintop golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $45 million 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 400,000 golfers are expected each year. Variable costs are about $15 per golfer.

If the Mountaintop golf course is a

pricetaker

and won't be able to charge more than its competitors who charge $75 per round of golf. What profit will it earn as a percent of assets?

A.

Profit of 35.56%

B.

Profit of 8.89%

C.

Loss of 8.89%

D.

Loss of 57.67%