Hilltop Golf Course is planning for the coming season.Investors would like to earn a 15% return on the company's $60,000,000 of assets.The company primarily incurs fixed costs to groom the greens and fairways.Fixed costs are projected to be $30,000,000 for the golfing season.About 500,000 rounds of golf are expected to be played each year.Variable costs are about $17 per round of golf.Hilltop Golf Course has a favourable reputation in the area and therefore,has some control over the price of a round of golf.Using a cost-plus pricing approach,what price should Hilltop charge for a round of golf to achieve the desired profit?

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The Answer of Hilltop Golf Course is planning for the coming season.Investors would like to earn a 15% return on the company's $60,000,000 of assets.The company primarily incurs fixed costs to groom the greens and fairways.Fixed costs are projected to be $30,000,000 for the golfing season.About 500,000 rounds of golf are expected to be played each year.Variable costs are about $17 per round of golf.Hilltop Golf Course has a favourable reputation in the area and therefore,has some control over the price of a round of golf.Using a cost-plus pricing approach,what price should Hilltop charge for a round of golf to achieve the desired profit?

Hilltop Golf Course Is Planning for the Coming Season