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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?

image text in transcribed

O A. Profit of 4.1% O B. Loss of 4.1% O C. Loss of 48.08% O D. Profit of 32.56%

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