Willow Golf Course is planning for the coming golfing season.Investors would like to earn a 10% 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 $32,000,000 for the season.About 600,000 rounds of golf are expected to be played each year.Variable costs are about $15 per round of golf.Willow golf course is a price-taker and will not be able to charge more than its competitors,who charge $78 per round of golf.Compute the operating profit that will be earned.
A) $5,800,000
B) $6,000,000
C) $87,800,000
D) $46,800,000
Correct Answer:
Verified
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