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

question 119

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.
-If the Philadelphia Swim Club is a price-taker and won't be able to charge more than its competitors who charge $37.00 for a membership. What profit will it earn in terms of dollars?

• A) $11,000,000
• B) $(12,500,000)
• C) $1,000,000
• D) $(1,000,000)

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Definitions:

Discomfort

A mild physical or emotional state of feeling unwell or uneasy.

Proctoscope

A medical instrument used to examine the inside of the rectum.

Rectum

The final section of the large intestine, terminating at the anus, where feces are stored before elimination.

Anal Canal

The final segment of the large intestine that connects the rectum to the anus, through which stools are expelled.