Mount Snows operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. (Click the icon to view the information.) Read the requirements COLD Requirement 1. If Mount Snows cannot reduce its costs, what profit will it eam? State your answer in dollars and as a percent of assets. Wil investors be happy with the profit level? Complete the following table to calculate Mount Snows' projected income Revenue at market price Less: Total costs Operating income Round the percentage to the nearest hundredth percent, XXX%) Mount Snows's projected operating income (proft) as a percent of assets amounts to Wil investors be happy with this profit lever? No, because the expected profit level does not meet the investors target return on assets. Yes, because the expected profit level meets or exceeds the investors' target return on assets Target full cost w target variable cost per skier/snowboarder? final answer to the nearest cent.) tal costs g income. the percentage to the nearest hundredth percent, XXX%) Snows's projected operating income (profit) as a percent of assets amounts to estors be happy with this profit level? irement 2. Assume Mount Snows has found ways to cut its fixed costs to $34,000,000. What is its new target variable cost per skier/snowboarder? plete the following table to calculate Mount Snows' new target variable cost per customer. (Round your final answer to the nearest cent.) anue at market price s: Desired profit get full cost ss: Reduced level of fixed costs rget total variable costs vided by number of skiers/snowboarders arget variable cost per skier / snowboarder company is ion: 5 point sts, what profit w s' projected inco Investors would like to earn a 15% return on investment on the company's $165,000,000 of assets. Mount Snows projects fixed costs to be $36,000,000 for the ski season. The resort serves about 750,000 skiers and snowboarders each season. Variable costs are about $7 per guest. Last year, due to its favorable reputation, Mount Snows 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 Mount Snows' reputation has diminished and other resorts in the vicinity are charging only $84 per lift ticket. Mount Snows has become a price-taker and will not be able to charge more than its competitors. At the market price, Mount Snows managers believe they will still serve 750,000 skiers and snowboarders each season. evel? Cent, XXX as a perce ways to cut Requirements 1. If Mount Snows 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 Mount Snows has found ways to cut its fixed costs to $34,000,000. What is its new target variable cost per skier/snowboarder? Print Done -X