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What price philadelphia swim club charge for membership

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Reference no: EM132515668

Philadelphia 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 pool. Fixed costs are projected to be $12,900,000 for the year. About 540,000 members are expected to swim each year. Variable costs are about $10.00 per swimmer. The Philadelphia Swim Club has a favorable reputation in the area and? therefore, has some control over the membership price.

Question 1: Using a costminus-plus ?approach, what price should Philadelphia Swim Club charge for a? membership?

Reference no: EM132515668

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