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Investors would like to earn a 10% return on investment on the company's $260,900,000 of assets. SnowCastles projects fixed costs to be $30,000,000 for the

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Investors would like to earn a 10% return on investment on the company's $260,900,000 of assets. SnowCastles projects fixed costs to be $30,000,000 for the ski season. The resort serves about 710,000 skiers and snowboarders each seascry. Variable costs are about $11 per guest. Last year, due to its favorable reputation, SnowCastles was a price-setter and was able to charge $4 more per lift ticket than its competitors without a reduction in the number of customers it received. Assume that SnowCastles' reputation has diminished and other resorts in the vicinity are charging only $86 per lift ticket. SnowCastles has become a price-taker and will not be able to charge more than its competitors. At the market price, SnowCastles managers believe they will still serve 710,000 skiers and snowboarders each season. season. (Click the icon to view the information.) Read the requirements. Requirement 1. If SnowCastles cannot 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? Complete the following table to calculate SnowCastles' projected income. (Round the percentage to the nearest hundredth percent, X.XX%.) SnowCastles's projected operating income (profit) as a percent of assets amounts to %. Will investors be happy with this profit level? Requirement 2. Assume SnowCastles has found ways to cut its fixed costs to $27,800,000. What is its new target variable cost per skier/snowboarder? Will investors be happy with this profit level? Requirement 2. Assume SnowCastles has found ways to cut its fixed costs to $27,800,000. What is its new target variable cost per skier/snowboarder? Complete the following table to calculate SnowCastles' new target variable cost per customer. (Round your final answer to the nearest cent.) 1. If SnowCastles cannot 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? 2. Assume SnowCastles has found ways to cut its fixed costs to $27,800,000. What is its new target variable cost per skier/snowboarder

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