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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 $36,000,000 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 $36,000,000 of assets. The company primarily incurs fixed costs to maintain the swimming pools. Fixed costs are projected to be $13,000,000 for the year. About 530,000 members are expected to swim each year. Variable costs are about $14 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.) A. Loss of 2.17% B. Loss of 56.72% C. Profit of 2.17% D. Profit of 36.11%
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