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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.
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 pool. Fixed costs are projected to be $12,600,000 for the year. About 520,000 members are expected to swim each year. Variable costs are about $12 per swimmer. The club has a favorable reputation in the area and therefore, has some control over the membership price. Using a cost - plus approach, what price should club charge for a membership? (Round the final answer to the nearest cent.) O A. $36.23 O B. $43.92 O C. $28.54 OD. $7.69
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