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Category > Accounting Posted 16 May 2017 My Price 7.00

Mountaintop golf course is planning for the coming season

4. Mountaintop golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $50 million of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $25,000,000 for the golfing season. About 400,000 golfers are expected each year. Variable selling and administrative costs are about $8 per golfer. The Mountaintop golf course has a favorable reputation in the area and therefore, has some control over the price of a round of golf. Using a cost-plus approach, what price should Mountaintop charge for a round of golf?

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(8)
Status NEW Posted 16 May 2017 07:05 AM My Price 7.00

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Attachments

file 1494920976-451547_1_636304153958455102_Cost-plus-pricing.xlsx preview (160 words )
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