Assume the City of Los Angeles owns and operates a small 9-hole golf course. The sole source of revenue for that golf course is a $9.00 fee per golfer. On the cost side, the golf course has two types of costs: fixed costs, which are $600,000 annually, and variable costs, which are $4.00 per golfer.

- Calculate the annual break-even number of golfers i.e., the annual number of golfers at which that golf course's total revenue will equal its total costs.
- At that break-even number of golfers, what is the average cost per golfer to the golf course?
- Assume that for the year, the number of golfers at the golf course equaled that break-even number of golfers
**plus 5,000 additional golfers**. What would be the added (i.e., "incremental") cost to the golf course of these 5,000 additional golfers? - What is the average cost per golfer to the golf course when annual the number of golfers equals the break-even number of golfers
**plus 5,000 additional golfers**?

Subject | Mathematics |

Due By (Pacific Time) | 07/06/2013 03:00 pm |

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