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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 $37,000,000 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 $37,000,000 of assets. The company primarily incurs fixed costs to maintain the swimming pools. Fixed costs are projected to be $12,600,000 for the year. About 550,000 members are expected to swim each year. Variable costs are about $13 per swimmer. The club is a price-taker and won't be able to charge more than its competitors who charge $37 for a membership. What profit (loss) will it earn in terms of dollars? O A. $12,600,000 OB. $600,000 O C. $(600,000) OD. $5,999,963
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