E Question Help Mount Snow 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 17% return on the company's $105 million of assets. The company incurs primarily foved costs to groom the runs and operate the lifts Mount Snow projects fixed costs to be $36,600,000 for the ski sonson. The resort serves about 825,000 skiers and snowboarders each season. Variable costs are 58 per quest. The resort had such a favorable reputation among skiers and snowboarders that it had some control over the int ticket prices Assume that Mount Snow's reputation has diminished and other resorts in the vicinity are charging only 567 per fint ticket. Mount Snow has become a price-taker and won't be able to charge more than its competitors. At the market price, Mount Snow's managers believe they will still serve 825,000 skiers and snowboarders each season Read the requirements 115 Operating income $ 12.075,000 Compared to the desired operating income of 17.850,000 Expected excess profit (profit shortfall) $ (5,775,000) (Round the percentage to the nearest hundredth percent, X.XX%) As a perontage of assets, Mount Snow projected profit is Will investors be happy with this profit level? No, because the expected return on assets is less than the desired return on assets. Stock prices may decline as a result 2. Assume that Mount Snow has found ways to cut its fixed costs to $33.3 milion. What is its new target variable cost per skierowboarder? Compare this to the current variable cost per skier/snowboarder. Comment on your results Complete the following table to calculate Mount Snow's new target variable cost per customer (Round your final answer to the nearest cent) Revenue at market price $ 55,275,000 Desired profit Target total costs Loss Less: 825,000 Targot total variable costs Divided by: Number of skors/snowboarders Target variable cost per skier / snowboarder Choose from any list or enter any number in the input fields and then click Check