Problem
Mountaintop golf course is planning for the coming season. Investors would like to earn a? 12% return on the? company's $49,000,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $20,000,000 for the golfing season. About 410,000 golfers are expected each year. Variable costs are about $15 per golfer. The Mountaintop golf course is a priceminus-taker and won't be able to charge more than its competitors who charge $103 per round of golf. What profit will it earn in terms of dollars?