• Alpine Ski Resorts is reviewing its operational costs concerning the number of ski passes sold.
• Data Provided:
  • Low Season: Total Costs: $200,000, Ski Passes: 2,500
  • High Season: Total Costs: $600,000, Ski Passes: 7,500
• Tasks:
  • Apply the High-Low Method to calculate the variable cost per ski pass and fixed costs.
  • Formulate a cost equation.
  • Predict costs for selling 5,000 ski passes.
  • Analyze how seasonality impacts cost structure and pricing strategies.