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Identify the Fixed and Variable costs i n this case list the cost name, the amounts, and the total o f fixed cost and total

Identify the Fixed and Variable costs in this case list the cost name, the amounts, and the total of fixed cost and total for variable costs. Note for costs, you will use cash flows and not expenses -in other words, you will not need to compute depreciation
You work for a venture capitalist and have been asked to analyze a proposal from a group of
investors interested in building a new ski area in Colorado, the Stardust Canyon Ski Resort. The
demand for skiing is growing. Existing ski resorts have raised prices and reported record profits
for the last two seasons. Stardust Canyons business strategy isto offer the ultimate ski experience - short lift lines, uncongested ski slopes and spectacular scenery. With a2500-foot vertical drop, 10 trails, and a single triple three person ski lift, it can provide a very ncongested ski resort. The resort will have a triple-person ski lift. The planned triple-person
ski lift delivers a chair every 20 seconds, 180 chairs per hour 3 chairs per minute X60 minutes per hour, or540 skiers per hour 180 chairs per hour X3 skiers per chair. This puts an average of only 54 skiers per hour on each of the 10 trails. Some trails will be more popular than others, but this average number of skiers per trail per hour is still below industry average.
The cost to build the ski runs, parking lots, and buildings and to erect the chair lift is $52 million.
To raise this amount of capital requires an annual financing cost debt service* and dividends
of $8.3 million. The annual fixed operating cost land lease, utilities, labor, taxes, insurance of the ski resort is projected tobe $4.1 million. For each 100 skiers per day, additional employees must be hired to staff the ticket office, ski patrol, parking lots and so forth. The daily cost of the
additional labor is $200 per 100 skiers per day. The typical skier makes two ski runs per day uses the lift twice. Ski resorts operate their lifts 8
hours per day, 120 days per year. Stardust Mountain plans to sell one-day lift tickets for $60 per skier per day: No season passes will be offered.

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