Question

This Question: 2 pts Time Remaining: 01:02:47 Submit Test 19 of 25 (0 complete) This Test: 50 pts possible Mountaintop golf course is planning for the coming season. Investors would like to earn a 12% return on th ncurs fixed costs to groom t Variable costs are about $19 per golfer. The Mountaintop golf course is a price- taker and wont be able to charge more of golf. What profit will it earn in terms of dollars? company's $49,000,000 of assets. The company primarily he greens and fairways. Fixed costs are projected to be $23,000,000 for the golfing season. About 410,000 golfers are expected each year co than ts ompeitos who charge $75 per round O A. $15,540,000 ? B. S(23,000,000) O c. $(40,000) D. S((40,000)) 0 of o

Answer 1

Answer

Sales price = $75

Variable Cost = $19 per golfer

Fixed Cost = $23,000,000

Sales = $75 * 410,000 Golfers

Sales = $30,750,000

Variable Cost = $19 * 410,000 Golfers

= $7,790,000

Profit = Sales – Variable Cost – Fixed Cost

= $30,750,000 - $7,790,000 - $23,000,000

Loss = (40,000)