Question

Suppose a local golf club uses a​ cost-plus approach to charge members to play golf. In​ particular, the club estimates that it will cost ​$283 comma 000 to provide 12 comma 000 rounds of golf. If the club marks up the average cost of producing a round of golf 30​ percent, then it will charge a price of ​$ nothing per round of golf.

Answer 1

Answer:

$30.66 per round of golf

Explanation:

Average Cost = $283,000 / 12,000 rounds of Golf

Average Cost = $23.58 per rounds of golf

Cost Plus Pricing = $23.58 per rounds of golf x 1.30

Cost Plus Pricing = $30.66 per round of golf