Mount Snow$$operates a Rocky Mountain ski resort. The

company is planning its lift ticket pricing for the coming ski

season. Investors would like to earn a $15\%$return on

the$$company$\text{'}$s $$100$ million of assets. The company incurs

primarily fixed costs to groom the runs and operate the

lifts.$$Mount$$Snow projects fixed costs to

be$$$$33,750,000$for the ski season. The resort serves

about$750,000$skiers and snowboarders each season.

Variable costs are $$10$per guest. The resort had such a

favorable reputation among skiers and snowboarders that it had some

control over the lift ticket prices.Assume that$$Mount$$Snow$\text{'}$s$$reputation has

diminished and other resorts in the vicinity are charging only

$$65$per lift ticket.$$Mount$$Snow has become

a$$price$-$taker and$$won$\text{'}$t be able to charge more than its

competitors. At the market$$price$,$Mount$$Snow$\text{'}$s

managers believe they will still serve $750,000$skiers and

snowboarders each season.Read the requirements$\mathrm{.}1.$ If Mount SnowMount$$Snow$$can$\text{'}$t 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$?$ Show your analysis.Complete the following

table to calculate$$Mount

Snow'sMount$$Snow$\text{'}$s$$projected income and excess profit or

shortfall. $($Use parentheses or a minus sign to show a

profit$$shortfall$.)$Revenue at market price$$Less: Total costs$$Operating income$$Compared to the desired operating income of$$Expected excess profit $($profit shortfall$)$