charge? Note Short Exercise S25-2 must be completed before attempting Short Exercise S25.5. S25-3 Making pricing decisions Lear Refer to details about Skiable Acres from Short Exercise S25-2. Assume that Ski- able Acres's reputation has diminished and other resorts in the vicinity are charging only $85 per lift ticket. Skiable Acres has become a price-taker and will not be able to charge more than its competitors. At the market price, Skiable Acres managers believe they will still serve 725,000 skiers and snowboarders each season. Requirements 1. If Skiable Acres cannot reduce its costs, what profit will it earn? State your answer in dollars and as a percent of assets. Will investors be happy with the profit level? 2. Assume Skiable Acres has found ways to cut its fixed costs to $30,000,000. What is its new target variable cost per skier/snowboarder? charge? Note Short Exercise S25-2 must be completed before attempting Short Exercise S25.5. S25-3 Making pricing decisions Lear Refer to details about Skiable Acres from Short Exercise S25-2. Assume that Ski- able Acres's reputation has diminished and other resorts in the vicinity are charging only $85 per lift ticket. Skiable Acres has become a price-taker and will not be able to charge more than its competitors. At the market price, Skiable Acres managers believe they will still serve 725,000 skiers and snowboarders each season. Requirements 1. If Skiable Acres cannot reduce its costs, what profit will it earn? State your answer in dollars and as a percent of assets. Will investors be happy with the profit level? 2. Assume Skiable Acres has found ways to cut its fixed costs to $30,000,000. What is its new target variable cost per skier/snowboarder