Hilltop Golf Course Is Planning for the Coming Golfing Season

question 106

Multiple Choice

Hilltop Golf Course is planning for the coming golfing season.Investors would like to earn a 15% 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 $30,000,000 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.Hilltop golf course is a price-taker and will not be able to charge more than its competitors,who charge $75 per round of golf.What profit will it earn in terms of dollars?

• A)$6,000,000
• B)$9,000,000
• C)$48,000,000
• D)$45,000,000

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Definitions:

Quorum

The minimum number of members required to be present at a meeting to make the proceedings of that meeting valid.

Shareholder Agreement

A contract among shareholders of a company outlining their rights, obligations, and mutual agreements regarding company operations and governance.

Duration

The length of time during which something exists or continues.

Statutory Close Corporation Supplement

Additional legal provisions or regulations applicable to a close corporation, closely held and not publicly traded, defined by statute.