S8-2 (similar to) Question Help operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. Investors would like to earn a 15 %15% return on the company's $ 100$100 million of assets. The company incurs primarily fixed costs to groom the runs and operate the lifts. projects fixed costs to be $ 33 comma 750 comma 000$33,750,000 for the ski season. The resort serves 750 comma 000750,000 skiers and snowboarders each season. Variable costs are $ 10$10 per guest. Currently, the resort has such a favorable reputation among skiers and snowboarders that it has some control over the lift ticket prices. 1. Would emphasize target costing or cost-plus pricing. Why? 2. If other resorts in the area charge $ 65$65 per day, what price should charge?
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S8-2 (similar to) Question Help operates a Rocky Mountain ski resort. The company is planning its l...
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