Good Looks Fitness Operates a Large Fitness Centre in a University

Good Looks Fitness operates a large fitness centre in a University Town. Being the newest fitness centre in the area Good Looks believes they must be a price taker until they establish a reputation for quality service. Other fitness centres in the area are charging $20 per customer visit. The owners would like to earn a 15% return on the company's $2,000,000 in assets. The company incurs primarily fixed costs to maintain and staff the centre. Good Looks projects fixed costs to be $580,000 fixed costs for the upcoming year. Good Looks is a pay per use facility and expects to serve 55,000 customers during the year. Variable costs are estimated at $5 per customer visit. The management accountant employed by Good Looks has determined that the target profitability cannot be achieved under the present cost structure at a price of $20 per customer visit. The accountant believes fixed costs can be reduced by $27,500.
Required:
If the fixed cost reduction is achieved what is the maximum variable cost per customer visit that will allow Good looks to achieve the target profitability?