Answer: $75.33
Explanation:
First find the total costs of a round of golf for the entire season:
= Fixed costs + Variable costs
= 30,000,000 + (17 * 600,000 rounds)
= $40,200,000
They would like to earn 10% on 50,000,000 which is $5,000,000
The revenue should therefore be:
= Costs + Expected return
= 40,200,000 + 5,000,000
= $45,200,000
Price per round to achieve this:
= Revenue / Rounds of golf
= 45,200,000 / 600,000
= $75.33