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Mount Snow operates a Rocky Mountain ski resort. The company is planning its lift scket pricing for the coming ski season. Investors would like to

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Mount Snow operates a Rocky Mountain ski resort. The company is planning its lift scket pricing for the coming ski season. Investors would like to earn a 17% re costs to groom the runs and operate the lifts, Mount Snow projects fixed costs to be $36,600,000 for the ski season. The resort serves 825,000 skiers and snowt such a favorable reputation among skiers and snowboarders that it has some control over the lift ticket prices. 1. Would Mount Snow emphasize target costing or cost-plus pricing. Why? If other resorts in the area charge $67 per day, what price should Mount Snow charge? 2. 1. Would Mount Snow emphasize target costing or cost-plus pricing, Why? Mount Snow should emphasize a approach to pricing because it has been able to differentiate its ski resort from others in the aren. Because of its fe still need to consider whether the price is within the range customers are willing to pay. 2. If other resorts in the area charge 567 per day, what price should Mount Snow charge? Complete the following table to calculate the price Mount Snow should chargo. (Round your answer to the nearest cent.) Plus: Plus: Target revenue Divided by Price per lift ticket estors would like to earn a 17% return on the company's $105 million of assets. The company incurs primarily fixed serves 825,000 skiers and snowboarders each season. Variable costs are $8 per guest. Currently, the resort has hers in the area. Because of its favorable reputation, managers will have control over pricing. Of course, they Mount Snow operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. Investors wou costs to groom the runs and operate the lifts. Mount Snow projects fixed costs to be $36,600,000 for the ski season. The resort serves 82 such a favorable reputation among skiers and snowboarders that it has some control over the lift ticket prices. 1. Would Mount Snow emphasize target costing or cost-plus pricing. Why? If other resorts in the area charge $67 per day, what price should Mount Snow charge? 2. 2. If other resorts in the area charge $67 per day, what price should Mount Snow charge? Complete the following table to calculate the price Mount Snow should charge. (Round your answer to the nearest cent.) Plus: Plus Target revenue Divided by: Price per lift ticket If other resorts in the area charge $67 per day, what price should Mount Snow charge? The price is be able to charge competing ski resorts in the area. Given Mount Snow reputation, they should a day without affecting their volume

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