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SnowDelight operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski seasom Investors would like to earn a 10% return on investment on the company's S260,900i000 of assets. The company primarily incurs fixed costs to groom the runs and operate the lifts. SnowDeIight projects fixed costs to be for the ski season. The resort serves about 710,000 skiers and snowboarders each season. Variable costs are about S13 per guest. Currently, the resort has such a favorable reputation among skiers and snowboarders that it has some control over the lift ticket prices. Read the requirements. Requirement 1. Would SnowDelight emphasize target pricing or cost-plus pricing? Why? SnowDelight 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 good 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. Requirement 2. If other resorts in the area charge $89 per day, what price should SnowDelight charge? Complete the following table to calculate the price SnowDelight should charge per lift ticket Fixed costs Plus: Total variable costs Total costs Plus: Desired profit Target revenue Divided by: Number of skiers / snowboarders Price per lift ticket