Use the Information Below to Answer the Following Question(s)

question 181

Multiple Choice

Use the information below to answer the following question(s) :
Rosemont Tennis is planning for the coming year. Investors would like to earn a 12% return on the company's $25 million of assets. The company primarily incurs fixed costs to maintain the tennis courts. Fixed costs are projected to be $12,500,000 for the year. About 500,000 court time hours are expected to be played each year. Variable costs are about $5 per hour of court time.
-Using a cost-plus approach, what price should Rosemont Tennis charge for an hour of court time?

• A) $33.00
• B) $36.00
• C) $24.00
• D) $0.20

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Definitions:

Neurotransmitters

Chemical messengers in the brain that transmit signals across synapses from one neuron to another, influencing various functions including mood and behavior.

Misbehavior

Actions or conduct that are inappropriate or violate expected rules and norms within a given context.

Unconscious Mental Activity

Activity of the mind that occurs without conscious awareness, influencing thoughts, feelings, and behaviors, a key concept in psychoanalytic theory.