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5ncwDclights operates a Rocky Mountain ski resort The company is planning its lirt ticket pricing tor the coming ski scascn Investors would like to cam
5ncwDclights operates a Rocky Mountain ski resort The company is planning its lirt ticket pricing tor the coming ski scascn Investors would like to cam a 15% retum on the company's 3100 million of asscts. The company incurs primanly fixed costs to groom the nuns and operate the ts SnowDelights projects txed costs to be 533,75n, tor the ski esso The resort serves 5Dskiers and snowboarders each season Vanable costs are S1D per gues Currenty tne resorthas suchatavorable reputation among skiers nna snowboarders tnat it has somentrol over the litt tr.ket pnces Would SnowDelights emphasize target costing or cost-plus pricing. Why? If olher resorls in the area chalge S65 per day, wal prite should SriowDelils charue? 1. SncwDelights should emphasize approach to pricing because t has been able to differentiate its ski resort from others in he area. Because of its favore blerepre tion, managers w have control over pricing Of course they stil need to consider whether the price is within the range customers are willing to pay 2. If other resorts in the area charge $85 per day, what price should SnowDelights charge? Complete the tollowing table to calculate the price SnowDelights shou d charge. (Round your answer to the nearest cent Plus: Target revenuc Divded by Price per litt ticket If other resorls in the area charge S85 per day, what price should SnowDelights charge? The price is S be able to charge S competing ski resorts in the area. Civen SnowDelights reputation, they should -aday without affecting ther volume
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