Forever Snow operates a Rocky Mountain ski resort. The company is planning is the ticket pricing for the coming Click the icon to view the information) season Read the requirements investors be happy with the profit level? Requirement 1. 1 Forever Snow cannot reduce costs, what profit will team? State your answer in dollars and as a percent of Complete the following table to calculate Forever Snow's projected income Revenue at market price Less: Total costs Operating income (Round the percentage to the nearest hundred percent Xxx Forever Snow's projected operating income profit) as a percent of assets amounts to Wil investors be happy with this profit lever? Requirement 2. Assume Forever Snow has found ways to cut i fred costs to 531,100.000. What is its new target variable cost per sklowboarder? Complete the following table to calculate Forever Snow's new target variable cost per customer Round your fre e to the east cant) Revenue market price Less Desired pro Teget full cost Less Reduced level of feed costs Targe total variable costs Dided by number of sens o rders Target coper o wboard Enter any number in the o ld and then come to the next question E o Type here to search Forever Snow operates a Rocky Mountain ski resort The company is planning its ticket pricing for the coming skisease Click the icon to view the information) Read the requirements Requirement 1. Forever Snow cannot reduce costs what profit will team? State your answer in dollars and as a percent of assets. Will investors be happy with the profit level? Complete the following table to calculate Forever Show's projected income Revenue market price Le Tocos Operating income Round the percentage is the new hundred percent ) Forever Snow's projected operating income prot) s percent of o be happy with this prove W new large cost peresnowboarder? No because the expected provides Yes because the p rove oft level me the weston target return s ds the target return on assets new to the a Les de Target cost Reduced level of freedo Tagarcos Divided by number of skersiowboarders Emery number in the cold and then continue to the question Type here to search ors' target return on assets. More Info Investors would like to earn a 11% return on investment on the company's $156,000,000 of assets. Forever Snow projects fixed costs to be $33,000,000 for the ski season. The resort serves about 660,000 skiers and snowboarders each season. Variable costs are about $7 per guest. Last year, due to its favorable reputation, Forever Snow was a price-setter and was able to charge $3 more per lift ticket than its competitors without a reduction in the number of customers it received. Assume that Forever Snow's reputation has diminished and other resorts in the vicinity are charging only $80 per lift ticket. Forever Snow has become a price-taker and will not be able to charge more than its competitors. At the market price, Forever Snow managers believe they will still serve 660,000 skiers and snowboarders each season Print Done