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:

Transformational Change

A profound or radical change that fundamentally alters the culture, core values, and operations of an organization, often leading to a shift in its business direction.

Bottom-up Change

A change initiative that starts at the lower levels of an organization and seeks approval or acceptance from higher levels.

Incremental Change

Gradual, step-by-step modifications made in processes, practices, or policies within an organization to improve or adapt.

Frame-bending Change

A transformational approach that significantly alters the existing norms, structures, or practices within an organization.