Yoga, Spa, and Swim Club is planning for the coming year Investors would like to eam a 10% retum on the company's $39.000.000 of assets. The company primarly incurs fixed costs to mu the swimming pools Fixed costs are projected to be $12,600,000 for the year. About 520,000 members are expected to swim each year Variable costs are about $10 per swimmer The clubi price-taker and won't be able to charge more than its competitors who charge $38 for a membership. What profit (ees) will it eam in terms of dollars? OA $12.600.000 OB $1,960,000 OC. $7,919.962 OD. $(1,960,000)

Yoga, Spa, and Swim Club is planning for the coming year Investors would like to eam a 10% retum on the company's $39.000.000 of assets. The company primarly incurs fixed costs to mu the swimming pools Fixed costs are projected to be $12,600,000 for the year. About 520,000 members are expected to swim each year Variable costs are about $10 per swimmer The clubi price-taker and won't be able to charge more than its competitors who charge $38 for a membership. What profit (ees) will it eam in terms of dollars? OA $12.600.000 OB $1,960,000 OC. $7,919.962 OD. $(1,960,000)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

K-
Yoga, Spa, and Swim Club is planning for the coming year. Investors would like to eam a 10% rebum on the company's $39,000,000 of assets. The company primarily incurs fixed costs maintain
the swimming pools, Fixed costs are projected to be $12,600,000 for the year. About 520,000 members are expected to swim each year. Variable costs are about $10 per swimmer. The club is a
price-taker and won't be able to charge more than its competitors who charge $38 for a membership. What profit (loss) will it earn in terms of dollars?
OA $12,600,000
OB. $1,900,000
OC. $7,919,962
OD. $(1,960,000)

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