You are considering playing regularly at a golf club where the cost to play one round of golf is $50, which includes the use of a cart. Alternatively, you could “join” this club for $3000 a year (unlimited golf except that you pay $10 each round for your golf cart). Assume that golf carts are required. How many rounds of golf would you need to play per year before joining the club becomes your best option?
Group of answer choices
100
150
75
50
125
No. of rounds of golf would need to play per year before joining the club becomes best option = Yearly Fixed cost / (Cost to play one round of golf - golf cart rate)
= $3000 / (50 - 10)
= 75 rounds
You are considering playing regularly at a golf club where the cost to play one round...