Burr Hill golf course is planning for the coming season.Investors would like to earn a 10% return on the company's $50 million of assets.The company primarily incurs fixed costs to groom the greens and fairways.Fixed costs are projected to be $25 million for the golfing season.About 500,000 golfers are expected each year.Variable costs are about $10 per golfer.
Burr Hill golf course is a price-taker and won't be able to charge more than $65 per round because of local competition.
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What will Burr Hill's expected profit shortfall be if it charges $65/round?

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The Answer of  Burr Hill golf course is planning for the coming season.Investors would like to earn a 10% return on the company's $50 million of assets.The company primarily incurs fixed costs to groom the greens and fairways.Fixed costs are projected to be $25 million for the golfing season.About 500,000 golfers are expected each year.Variable costs are about $10 per golfer.
Burr Hill golf course is a price-taker and won't be able to charge more than $65 per round because of local competition.
-
What will Burr Hill's expected profit shortfall be if it charges $65/round?

Burr Hill Golf Course Is Planning for the Coming Season