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

question 81

Multiple Choice

Use the information below to answer the following question(s) :
Philadelphia Swim Club is planning for the coming year. Investors would like to earn a 10% return on the company's $30 million of assets. The company primarily incurs fixed costs to maintain the swimming pool. Fixed costs are projected to be $12,500,000 for the year. About 500,000 members are expected to swim each year. Variable costs are about $10 per swimmer.
-Using a cost-plus approach, what price should Philadelphia Swim Club charge for a membership?

• A) $41.00
• B) $37.50
• C) $29.00
• D) $ 0.17

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Definitions:

Bulimia Nervosa

An eating disorder characterized by episodes of binge eating followed by compensatory behaviors such as purging to prevent weight gain.

Lanugo

Fine, soft hair, especially that which covers the body and limbs of a human fetus or newborn.

Alopecia

A condition resulting in partial or complete loss of hair from the body, including the scalp, often due to genetic, hormonal, or autoimmune factors.

Imbalanced Nutrition

A state where nutritional intake does not meet the body's needs, leading to health issues such as undernutrition or overnutrition.