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Business, 06.05.2020 02:44, augestfaith
Manhattan Swim Club is planning for the coming year. Investors would like to earn a 10% return on the company's $36,000,000 of assets. The company primarily incurs fixed costs to maintain the swimming pools. Fixed costs are projected to be $12,500,000 for the year. About 525,000 members are expected to swim each year. Variable costs are about $12 per swimmer. Manhattan Swim Club is a price-taker and won't be able to charge more than its competitors who charge $40 for a membership. What profit will it earn in terms of dollars? (1 point)
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