1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
natulia [17]
2 years ago
15

Links Golf Course is planning for the coming golfing season. Investors would like to earn a​ 10% return on the​ company's $60,00

0,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be​ $32,000,000 for the season. About​ 600,000 rounds of golf are expected to be played each year. Variable costs are about​ $15 per round of golf. Links Golf Course is a​ price-taker and will not be able to charge more than its​ competitors, who charge​ $75 per round of golf. Compute the operating profit that will be earned.Select one:A. $6,000,000B. $46,800,000C. $87,800,000D. $5,800,000E. none of the above
Business
1 answer:
Y_Kistochka [10]2 years ago
6 0

Answer:

Option (E) is correct.

Explanation:

Revenue at the competitor price:

= Rounds of golf are expected to be played each year × Charge per round

= 600,000 × $75 per round

= $45,000,000

variable Cost:

= Rounds of golf are expected to be played each year × Variable cost per round

= (600,000 × $15)

= $9,000,000

Contribution Margin:

= Revenue at the competitor price - variable Cost

= $45,000,000  - $9,000,000

= $36,000,000

Less: Fixed Costs = 32,000,000

Operating profit:

= Contribution Margin - Fixed Costs

= $36,000,000 - $32,000,000

= $4,000,000

So, the operating profit is $4,000,000.

You might be interested in
Panther Co. had a quality-assurance warranty liability of $350,000 at the beginning of 2021 and $310,000 at the end of 2021. War
Diano4ka-milaya [45]

Answer:B

Explanation: :)

7 0
2 years ago
If happiness was money, what would your job be?​
lawyer [7]

Answer:

Being appreciated by people.

7 0
3 years ago
Read 2 more answers
As of june 30, 2019, great adventures finishes its first 12 months of operations. if suzie wants to prepare financial statements
wariber [46]
<span>As of June 30, 2013, Great Adventures finishes its first 12 months of operations. If Suzie wants to prepare financial statements, part of the process would involve allowing for uncollectible accounts receivable</span>
5 0
3 years ago
How do you accept criticism
ZanzabumX [31]
Criticism can be looked at in many different perspectives. Criticizing on one subject by looks may not bother you, but criticism about your athletic ability might make you feel negative about yourself. For me personally, I attempt to ignore the criticism and if not I express it to my friends.

4 0
3 years ago
Economists say that individuals make decisions at the margin. What does its menas?
leva [86]

Answer:

When Economists say that humans make decisions at the margin they mean that decisions are made on the basis of the cost and benefit of getting an additional unit of a good/ service.

Marginal benefit refers to the additional utility that we will derive from consuming one extra unit of a good or service and factors in heavily into our decision making. We usually accept a decision if the Marginal benefit is higher or equal to the Marginal cost ( cost of the additional unit) of the good/service.

If the Marginal Cost is instead higher, the decision would most probably be cancelled.

4 0
2 years ago
Other questions:
  • 18. Callon Industries has projected sales of 67,000 machines for 2012. The estimated January 1, 2012, inventory is 6,000 units,
    12·1 answer
  • Acme Corporation (Scenario) Acme Corporation's management feels that employees could be more motivated by their jobs. The jobs w
    14·1 answer
  • Zhang company reported cost of goods sold of $842,000, beginning inventory of $38,600 and ending inventory of $47,000. the avera
    5·1 answer
  • Yield to maturity (YTM) is the rate of return expected from a bond held until its maturity date. However, the YTM equals the exp
    6·1 answer
  • The Sports Warehouse operates in two distinct segments; equipment and apparel. The income statements for each operating segment
    13·2 answers
  • Crane Company received proceeds of $799000 on 10-year, 9% bonds issued on January 1, 2019. The bonds had a face value of $848000
    12·1 answer
  • If a strategic plan is failing to meet its objectives, but the company's execution is deemed sufficient, management should first
    10·1 answer
  • Carlos needs to combine words in a First Name and a Last Name column. Which of the following functions should he use
    14·1 answer
  • A new business should be based on an entrepreneur's individual interests because the entrepreneur must
    10·1 answer
  • Quick assets (cash, short-term investments, and current receivables) divided by current liabilities is the: Multiple Choice Curr
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!