Priadelohia Swim Chiaparning for Pocoring year-investors would ike toeam project
ID: 2432264 • Letter: P
Question
Priadelohia Swim Chiaparning for Pocoring year-investors would ike toeam projected to be $12.000,000 for the year. About 540,000 competitors who change $42 for a membership What profit vwill it earn in terms of dollars? a 10% eetum on the company's S39.000,000 of assets The coneay pmway non sad dots to marean the swim each year Vatable costs are abou $12 per saimmer Priladelphia Swim Club is a price-t swinming pools Fixed cots taker and won't be able to charge more than is members ae O A $12.800,000 OB $3.600,000 ? ?. s(3.60.00) OD $8 659,96Explanation / Answer
Answer: b)
profit will it earn in terms of dollar =$3,600,000
Working notes for the above answer is as under
Market price per unit
42
Expected volume
540,000
Revenue
22,680,000
Expected volume
540,000
Variable cost
12
Total Variable cost
6,480,000
Total fixed costs
12,600,000
Add:Total Variable cost
6,480,000
Total Product cost
19,080,000
Revenue
22,680,000
Less:
Total Product cost
19,080,000
Expected profit
3,600,000
Market price per unit
42
Expected volume
540,000
Revenue
22,680,000
Related Questions
Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.