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At Northvale Golf club the demand for rounds of golf by each one of the 100 identical senior golf members is given by Dsr in Figure 14.3. Northvale's annual fixed costs are $500,000 and variable costs are constant and equal to $30 per round.
a) If the manger of Northvale charge a uniform green fee to all senior golfers, the profit maximizing gree fee is ____per round. Under this unform pricing plan, Northvale' snnual total revenue is $ _____ and total variable cost is $________. Northvale's profit under uniform pricing is $ ____ per year.
b) If the manager instead decides to employ a two-part pricing plan, the profit maximizing ree fee is $_______ per round, and the annual membershipe charge is $_________. The two part pricing plan results in total annual profit of $________,
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