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oga, Spa, and Swim Club is planning for the coming year. Investors would like to earn a 10% return on the company's $36,000,000 of assets.
oga, Spa, and Swim Club is planning for the coming year. Investors would like to earn a 10% return on the company's $36,000,000 of assets. The company primarily incurs fixed costs to maintain the swimming ool. Fixed costs are projected to be $12,500,000 for the year. About 530,000 members are expected to swim each year. Variable costs are about $14 per swimmer. The club has a favorable reputation in the area nd therefore, has some control over the membership price. Using a cost - plus approach, what price should club charge for a membership? (Round the final answer to the nearest cent.) A. $44.38 B. $6.79 C. $37.58 D. $30.79
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