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Investors would like to earn a 11 % return on investment on the company's $156,000,000 of assets. Winter Run projects fixed costs to be $33,000,000

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Investors would like to earn a 11 % return on investment on the company's $156,000,000 of assets. Winter Run 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 $13 per guest. Last year, due to its favorable reputation Winter Run 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 Winter Run's reputation has diminished and other resorts in the vicinity are charging only $85 per lift ticket. Winter Run has become a price-taker and will noft be able to charge more than its competitors. At the market price, Winter Run managers believe they will still serve 660,000 skiers and snowboarders each season

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