Answered step by step
Verified Expert Solution
Question
1 Approved Answer
point(s) possible Rocky Pines golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $48,000,000
point(s) possible Rocky Pines golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $48,000,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $21,000,000 for the golfing season. About 420,000 golfers are expected each year. Variable costs are about $18 per golfer. Rocky Pines 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 the course charge for a round of golf? (Round the final answer to the nearest cent.) OA. $68.00 OB. $81.71 OC. $18.00 D. $128.00
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started