Question
Yoga, Spa, and Swim Club is planning for the coming year. Investors would like to earn a 10% return on the company's $ 39 comma
Yoga, Spa, and Swim Club is planning for the coming year. Investors would like to earn a 10% return on the company's $ 39 comma 000 comma 000 of assets. The company primarily incurs fixed costs to maintain the swimming pools. Fixed costs are projected to be $ 12 comma 800 comma 000 for the year. About 530 comma 000 members are expected to swim each year. Variable costs are about $ 15 per swimmer. The club is a priceminus taker and won't be able to charge more than its competitors who charge $ 40 for a membership. What profit (loss) will it earn as a percent of assets? (Round the percent to two decimal places.)
Yoga, Spa, and Swim Club is planning for the coming year. Investors would like to earn a 10% return on the company's $ 40 comma 000 comma 000 of assets. The company primarily incurs fixed costs to maintain the swimming pools. Fixed costs are projected to be $ 12 comma 900 comma 000 for the year. About 550 comma 000 members are expected to swim each year. Variable costs are about $ 15per swimmer. The club is a price-taker and won't be able to charge more than its competitors who charge $ 39 for a membership. What profit (loss) will it earn in terms of dollars?
Yoga, Spa, and 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 $12,800,000 for the year. About 530,000 members are expected to swim each year. Variable costs are about $15 per swimmer. The club is a price-taker and won't be able to charge more than its competitors who charge $40 for a membership. What profit (loss) will it earn as a percent of assets? (Round the percent to two decimal places.) O A. Loss of 1.15% O B. Profit of 1.15% O C. Loss of 53.21% OD. Profit of 32.82% Yoga, Spa, and Swim Club is planning for the coming year. Investors would like to earn a 10% return on the company's $40,000,000 of assets. The company primarily incurs fixed costs to maintain the swimming pools. Fixed costs are projected to be $12,900,000 for the year. About 550,000 members are expected to swim each year. Variable costs are about $15 per swimmer. The club is a price-taker and won't be able to charge more than its competitors who charge $39 for a membership. What profit (loss) will it earn in terms of dollars? O A. $12,900,000 OB. $(300,000) O C. $5,199,961 OD. $300,000Step by Step Solution
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