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Philadelphia Swim Club is planning for the coming year. Investors would like to earn a 10% return on the company's $39,000,000 of assets. The company
Philadelphia Swim Club is planning for the coming year. Investors would like to earn a 10% return on the company's $39,000,000
of assets. The company primarily incurs fixed costs to maintain the swimming pools. Fixed costs are projected to be $12,700,000
for the year. About 550,000 members are expected to swim each year. Variable costs are about $11 per swimmer. Philadelphia Swim Club is a
priceminustaker and won't be able to charge more than its competitors who charge $37
for a membership. What profit will it earn as a percent of assets?
O A. Profit of 4.1% O B. Loss of 4.1% O C. Loss of 48.08% O D. Profit of 32.56%Step by Step Solution
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