Mountaintop Golf Course Is Planning for the Coming Season

Mountaintop golf course is planning for the coming season.Investors would like to earn a 12% return on the company's $45 million of assets.The company primarily incurs fixed costs to groom the greens and fairways.Fixed costs are projected to be $20,000,000 for the golfing season.About 400,000 golfers are expected each year.Variable costs are about $15 per golfer.Mountaintop 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 Mountaintop charge for a round of golf?

A) $51.50
B) $71.00
C) $78.50
D) $ 0.21

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