Philadelphia Swim Club is planning for the coming year. Investors would like to earn a 10%...

 

Transcribed Image Text:

Philadelphia Swim Club is planning for the coming year. Investors would like to earn a 10% return on the company's $35,000,000 of assets. The company primarily incurs fixed costs to maintain the swimming pools. Fixed costs are projected to be $12,800,000 for the year. About 520,000 members are expected to swim each year. Variable costs are about $12 per swimmer. Philadelphia Swim Club is a price-taker and won't be able to charge more than its competitors who charge $39 for a membership. What profit will it earn in terms of dollars? Philadelphia Swim Club is planning for the coming year. Investors would like to earn a 10% return on the company's $35,000,000 of assets. The company primarily incurs fixed costs to maintain the swimming pools. Fixed costs are projected to be $12,800,000 for the year. About 520,000 members are expected to swim each year. Variable costs are about $12 per swimmer. Philadelphia Swim Club is a price-taker and won't be able to charge more than its competitors who charge $39 for a membership. What profit will it earn in terms of dollars?