Using a costminus-plus approach what price should


Philadelphia Swim Club is planning for the coming year. Investors would like to earn a 10% return on the company's $30 million of assets. The company primarily incurs fixed costs to maintain the swimming pool. Fixed costs are projected to be $12,500,000 for the year. About 500,000 members are expected to swim each year. Variable costs are about $10 per swimmer. The Philadelphia Swim Club has a favorable reputation in the area and therefore, has some control over the membership price. Using a costminus-plus approach, what price should Philadelphia Swim Club charge for a membership?

A. $29.00
B. $ 0.17
C. $37.50
D. $41.00

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Accounting Basics: Using a costminus-plus approach what price should
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