At Northvale Golf Club, the demand for rounds of golf by each one of the 100 identical senior golfer members is given by D_SR in Figure 14.3. Northvale?s annual fixed costs are $500,000, and variable costs are constant and equal to $30 per round.a. If the manager of Northvale charges a uniform green fee to all senior golfers, the profit-maximizing green fee is $____________ per round. Under this uniform pricing plan, Northvale?s annual total revenue is $____________ and total variable cost is $ ____________. Northvale?s profit under uniform pricing is $____________ per year.b. If the manager instead decides to employ a two-part pricing plan, the profit-maximizing green fee is $____________ per round, and the annual membership charge is $ ___________. The two-part pricing plan results in total annual profit of $ ____________.c. Which pricing plan?uniform pricing or two-part pricing?generates more profit for Northvale?s owner? Is this the pricing plan you expected to be more profitable? Why or why not?

Figure 14.3

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125 DSR: PSR = 125 – 0.5QSR 67.50 a 10 SMC = AVC %3D fig 115. MRSR 250 230 Quantity (rounds of golf per year) Price and cost (dollars per round)