Grand Chalets operates a Rocky Mountain ski resort. The company is planning its in 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 its Grand Chalets projects feed costs to be $33.750.000 for the ski season. The resort serves about 750,000 skiers and snowboarders each season Variable o are about 10 per guest. Currently the resort had such a favourable reputation among skiers and snowboarders that it had some control over the in-ticket prices Assume that Grand Chalets reputation has diminished and other resorts in the vicinity are charging only $65 per ticket Grand Chalets has become a price-taker and won't be able to charge more than its competitors. At the market price. Grand Chalets managers believe they will still serve 750,000 skiers and snowboarders each season 1. Grand Chalets can't reduce te costs, what profit will team? State your answer in dollars and as a percent of assets. Will investors be happy with the profit level? Show your analysis Complete the following table to calculate Grand Chalets projected income and excess profit or shorttal (Use parentheses or a minus sign to show a profit shortfall Operating income Compared to the desired operating income of Expected excess prof() As a percentage of assets Grand Chalet's projected profit is % (Round the percentage to two decimal places, X.XX%.)| Wil investors be happy with this profit level? Share prices 2. Assume that Grand Chalets has found ways to cut its fixed costs to $30 million. What is its new target variable cost per skiersnowboarder? Compare this to the current variable cost per skiersnowboarder Comment on your results Complete the following table to calculate Grand Chalets' new target variable cost per customer (Round your final answer to the nearest cent) Requirements 1. If Grand Chalets can't 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? Show your analysis. 2. Assume that Grand Chalets has found ways to cut its fixed costs to $30 million. What is its new target variable cost per skier/snowboarder? Compare this to the current variable cost per skier/snowboarder. Comment on your results. - Grand Chalets 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. Grand Chalets projects fixed costs to be $33,750,000 for the ski season. The resort serves about 750,000 skiers and snowboarders each season. Variable costs are about 10 per guest. Currently, the resort had such a favourable reputation among skiers and snowboarders that it had some control over the in-ticket prices Assume that Grand Chalets' reputation has diminished and other resorts in the vicinity are charging only $65 per lift ticket. Grand Chalets has become a price-taker and won't be able to charge more than its competitors. At the market price, Grand Chalets managers believe they will still serve 750,000 skiers and snowboarders each season. Requirements 1. If Grand Chalets can't 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? Show your analysis, Complete the following table to calculate Grand Chalets' projected income and excess profit or shortfall. (Use parentheses or a minus sign to show a profit shortfall.) Revenue at market price Less: Total costs Operating income Compared to the desired operating income of Expected excess profit (profit shortfall) As a percentage of assets, Grand Chalets's projected profit is %. (Round the percentage to two decimal places, XXX%) Will investors be happy with this profit lever? Share prices 2. Assume that Grand Chalets has found ways to cut its fixed costs to $30 million. What is its new target variable cost per skier/snowboarder? Compare this to the current variable cost per skier/snowboarder. Comment on your results. Complete the following table to calculate Grand Chalets' new target variable cost per customer. (Round your final answer to the nearest cent.) Les 2. Assume that Grand Chalets has found ways to cut its foxed costs to $30 million. What is its new target variable cost per skier/snowboarder? Compare this to the current variable cost per skied/snowboarder. Comment on your results. Complete the following table to calculate Grand Chalets' new target variable cost per customer. (Round your final answer to the neare cent.) Lass Lo Target total venable costs Divided by Target variate suet per seri snowboarder This target variable cost is vanable cost the current vanable cost of 10. Grand Chalets this target since it is the current