At Silverado Golf Club, the demand for rounds of golf by each one of the 140 identical senior golf members is given by D_SR in the figure below. Silverado’s annual fixed costs are $1,250,000, and variable costs are constant and equal to $25 per round. Show all work and calucations.

• If the manager of Silverado charges a uniform green fee to all senior golfers, the profit-maximizing green fee is $________ per round. Under this uniform pric­ing plan, Silverado’s annual total revenue is $________ and total variable cost is $________. Silverado’s profit under uniform pricing is $________ per year.
• If the manager instead decides to employ a two-part pricing plan, the profit-maximizing green fee is $________ per round, and the annual membership charge is $________. The two-part pricing plan results in total annual profit of $________.
• Which pricing plan—uniform pricing or two-part pricing—generates more profit for Silverado’s owner? Is this the pricing plan you expected to be more profitable? Why or why not?
   

150 D: P = 150-0.50s SR SR 25 SMC = AVC 300 Quantity (rounds per year) Price and cost (dollars per round)