disreagrd the first picture, this is the numbers to work with and the second picture is the format for the second part. thanks.
Winter Sports 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 15% return on the company's $100 million of assets. The company incurs primarily fixed costs to groom the runs and operate the lifts. Winter Sports projects fixed costs to be $33,750,000 for the ski season. The resort serves 750,000 skiers and snowboarders each season. Variable costs are $10 per guest. Currently, the resort has such a favorable reputation among skiers and snowboarders that it has some control over the lift ticket prices. 1. Would Winter Sports emphasize target costing or cost-plus pricing Why? 2. If other resorts in the area charge S65 per day, what price should Winter Sports charge? 1. Would Winter Sports emphasize target costing or cost-plus pricing. Why? Winter Sports should emphasize a approach to pricing because it has been able to differentiate its ski resort from others in the area. Because of its favorable reputation managers will have control over pricing. Of course, they still need to consider whether the price is within the range customers are willing to pay Click to select your answer(s) and then click Check Answer Winter Sports operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming on the company's $115 million of assets. The company incurs primarily fixed costs to groom the runs and opera $35,600,000 for the ski season. The resort serves 800,000 skiers and snowboarders each season. Variable cos favorable reputation among skiers and snowboarders that it has some control over the lift ticket prices. 1. Would Winter Sports emphasize target costing or cost-plus pricing. Why? 2. If other resorts in the area charge $64 per day, what price should Winter Sports charge? 2. If other resorts in the area charge $64 per day, what price should Winter Sports charge? Complete the following table to calculate the price Winter Sports should charge. (Round your answer to the near Fixed costs $ 35,600,000 Plus: Total variable costs 6,400,000 Total costs $ 42,000,000 Plus: Desired profit 18.400.000 Target revenue $ 60,400,000 800.000 Divided by Number of skiers / snowboarders $ 75.50 Price per lift ticket If other resorts in the area charge 564 per day. what price should Winter Sports charge? The price is $ 1150 above competing ski resorts in the area. Given Winter Sports reputation, they shou be able to charge $ 7550 a day without affecting their volume different numbers but this is the format for the second part All parts showing SnowDelights 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 15% return on the company's $115 million of assets. The company incurs primarily fixed costs to groom the runs and operate the lifts. SnowDelights projects fixed costs to be 543,500,000 for the ski season. The resort serves 900,000 skiers and snowboarders each season. Variable costs are $10 per guest. Currently, the resort has such a favorable reputation among skiers and snowboarders that it has some control over the lift ticket prices 1. Would SnowDelights emphasize target costing or cost-plus pricing. Why? 2. If other resorts in the area charge 566 per day, what price should SnowDelights charge? 1. Would SnowDelights emphasize target costing or cost-plus pricing. Why? SnowDelights should emphasize a cost-plus approach to pricing because it has been able to differentiate its ski resort from others in the area. Because of its favorable reputation, managers will have some control over pricing. Of course, they still need to consider whether the cost-plus price is within the range customers are willing to pay Click to select your answer(s) and then click Check
