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Business, 19.05.2020 21:59 kmontello5

Ocean View Golf Course is planning for the coming season. Investors would like to earn a 10% return on the company's $40 million of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $24,000,000 for the golfing season. About 350,000 golfers are expected each year. Variable costs are about $10 per golfer. The Ocean View 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 Ocean View charge for one round of golf? In order to be eligible for any partial credit, you must clearly show and neatly label your work.

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