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Rocky Pines golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $50,000,000 of assets.
Rocky Pines golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $50,000,000 of assets. The company primarily incurs fixed. costs to groom the greens and fairways. Fixed costs are projected to be $23,000,000 for the golfing season. About. 420,000 golfers are expected each year. Variable costs are about $16 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.) A) $70.76 B) $85.05 C) $16 D) $133.33
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