Tiger Woods golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $60 million of assets. The company primarily incurs fixed costs to groom the field. Fixed costs are projected to be $15,000,000 for the golfing season. About 500,000 golfers are expected each year. Variable costs are $8 million.
Using a cost-plus approach, what price should TW charge for a round of golf?

Answer rating: 100% (QA)

To determine the price that Tiger Woods golf course should charge for a round of golf using a costpl... View the full answer