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Green Pastures golf course is planning for the coming season. Investors would like to earn a? 10% return on the? company's $40 million oin assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be? $15,000,000 for the golfing season. About? 400,000 golfers are expected each year. Variable costs are about? $20 per golfer.
Problem 1: If the Green Pastures golf course is a price-taker and? won't be able to charge more than its competitors who charge? $75 per round of? golf., which is the profit Green Pastures will earn as a percent of? assets?
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