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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.

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In the given case, the tool that was causing problem got restored so that the customers can enjoy better service. Hence, we can conclude that the answer to the given problem is customer relationship.

3 0
2 years ago
Giancarlo has received an inheritance from his rich uncle and is contemplating the purchase of a Suzuki XL7. In an attempt to ma
Effectus [21]

Answer:

Giancarlo’s initial investment in the Suzuki XL7 is $17,122

Explanation:

The computation of the initial investment is shown below:

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The estimated value of the old, new car and the annual repair cost is not relevant for computing the initial investment. Hence, we ignore it and not considered this cost.

8 0
3 years ago
On August 1, 2022, Burdick Co. issued bonds with a face value of $600,000. The bonds carry a stated interest rate of 8%; interes
xz_007 [3.2K]

Answer:

$620,000

Explanation:

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the clean price of a bond refers to the price of the bond without any type of accrued interest, i.e. the price that the issuer would receive if it sold them at the same date that they were issued.

The dirty price includes both the clean price plus any accrued interest

4 0
3 years ago
Fixed rate mortgage offer: Principal: $170,000 Term: 30 years Interest rate: 4.25%Use this fixed-rate mortgage calculator to hel
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Answer:

its its $669 for the monthly payment and $877 for the total monthly payment

Explanation:

8 0
2 years ago
Online Gourmet is an online business that provides customers with recipes and all the ingredients needed to prepare a meal. This
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Answer:The answer is Deep customer knowledge

Explanation:

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4 0
3 years ago
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