Business, 30.07.2020 05:01 RSanyuathey711

WinterDreams 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 16 % return on the company's $ 115 million of assets. The company incurs primarily fixed costs to groom the runs and operate the lifts. WinterDreams projects fixed costs to be $ 35 comma 600 comma 000 for the ski season. The resort serves 800 comma 000 skiers and snowboarders each season. Variable costs are $ 8 per guest. Currently, the resort has such a favorable reputation among skiers and snowboarders that it has some control over the lift ticket prices. Required:
a. Would Mountain Point emphasize target pricing or cost-plus pricing? Why?
b. If other resorts in the area charge $66 per day, what price should Mount Snow charge?

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WinterDreams operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing f...

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