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1. Adventure Sports Inc. operates a Rocky Mountain ski resort. Adventure Sports is planning for its upcoming winter season. The company's fixed costs are
1. Adventure Sports Inc. operates a Rocky Mountain ski resort. Adventure Sports is planning for its upcoming winter season. The company's fixed costs are projected to be $28,000,000 for the season. About 900,000 skiers are expected each season. Variable costs are about $25 per skier. Investors would like to earn a 20% return on the company's $65 million of assets. Icy Sports is located in a remote location with one of the best skiing mountainsides, allowing the company to advertise as a one-of-a-kind experience. This enables to company to have control over its pricing. Required: What price should Icy Sports charge per customer for a skiing experience? (25 pts)
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