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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 $47,000,000 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 $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 400,000 golfers 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 golf Using a cost-plus approach, what price should Mountaintop charge for a round of golf? O A. $74 O B. $88.1 OC. $131.6 OD. $19
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