Question
Willow Golf Course is planning for the coming golfing season. Investors would like to earn a 10% return on the company's $60,000,000 of assets. The
Willow Golf Course is planning for the coming golfing season. Investors would like to earn a 10% return on the company's $60,000,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $32,000,000 for the season. About 600,000 rounds of golf are expected to be played each year. Variable costs are about $16 per round of golf. Willow golf course is a price-taker and will not be able to charge more than its competitors, who charge $78 per round of golf. Compute the operating profit that will be earned. (Enter your answer using $ sign and appropriate commas, e.g., $123,456,789).
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