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

question 76

Multiple Choice

Use the information below to answer the following question(s) :
Mountaintop golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $45 million of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $20,000,000 for the golfing season. About 400,000 golfers are expected each year. Variable costs are about $15 per golfer.
-If the Mountaintop golf course is a price-taker and won't be able to charge more than its competitors who charge $75 per round of golf. What profit will it earn as a percent of assets?

• A) Loss of 8.89%
• B) Profit of 35.56%
• C) Profit of 8.89%
• D) Loss of 57.67%

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Definitions:

Psychological Testing

The use of standardized tests to measure an individual's mental functions and behaviors in areas such as intelligence, aptitude, and personality.

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The confusion and discomfort that people experience when encountering significantly different cultures, often when living or working abroad.

Individualistic Culture

Characterizes societies that value personal freedom and independence, with an emphasis on individual achievements and rights.