Hilltop Golf Course Is Planning for the Coming Golfing Season

question 21

Multiple Choice

Hilltop Golf Course is planning for the coming golfing season.Investors would like to earn a 10% return on the company's $50,000,000 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 $16 per round of golf.Hilltop golf course has a favorable reputation in the area and,therefore,has some control over the sales price of a round of golf.Using a cost-plus pricing approach,what sales price should Hilltop charge for a round of golf to achieve the desired profit?

• A) $50
• B) $66
• C) $34
• D) $74

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Definitions:

Product Life Cycle

The stages a product goes through from its introduction to the market until its withdrawal, including development, introduction, growth, maturity, and decline.

Marketing Objective

A specific goal that a company aims to achieve through its marketing efforts, such as increasing brand awareness or sales.

Decline Stage

A phase in the product life cycle where sales and profitability begin to decrease, typically due to market saturation, technological advancement, or changing consumer preferences.

Marketing Objective

A specific goal set by a business that it intends to achieve through its marketing efforts, such as increasing brand awareness or sales.