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Rosemont Tennis is planning for the coming year. Investors would like to earn a 11% return on the company's $21610164 million of assets. The company primarily incurs fixed costs to maintain the tennis courts. Fixed costs are projected to be $10717851 for the year. About 500,000 court time hours are expected to be played each year. Variable costs are about $5 per hour of court time.
The Rosemont Country Club and Tennis Courts has a favorable reputation in the area and therefore, has some control over the price per hour of court time. Using a cost-plus approach, what price should Rosemont Tennis charge for an hour of court time? Do not round your intermediate calculations. Input your final answer to two decimal places, for example, 20.3473. should be input as 20.35
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