Use the information below to answer the following question(s) :
Philadelphia Swim Club is planning for the coming year. Investors would like to earn a 10% return on the company's $30 million of assets. The company primarily incurs fixed costs to maintain the swimming pool. Fixed costs are projected to be $12,500,000 for the year. About 500,000 members are expected to swim each year. Variable costs are about $10 per swimmer.
-Using a cost-plus approach, what price should Philadelphia Swim Club charge for a membership?
A) $41.00
B) $37.50
C) $29.00
D) $ 0.17
Correct Answer:
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