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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 the Philadelphia Swim Club earn as a percent of assets?
Cash Inflow
The total amount of money being transferred into a company, usually from operations, investments, or financing activities.
Residual Value
The estimated value of an asset at the end of its useful life.
Lessor
An entity that leases property or equipment to another party, known as the lessee, under a lease agreement.
Debt-Related Restrictions
These are covenants or conditions included in loan agreements that limit certain actions of the borrower to protect the lender.
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