> Mountain Point operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. Investors would like to eam a 14% return on investment on the company's $183,750,000 of assets. The company primarily incurs fixed costs to groom the runs and operate the lifts. Mountain Point projects foxed costs to be $33,000,000 for the ski season. The resort serves about 725,000 skiers and snowboarders each season. Variable costs are about $11 per guest. Currently, the resort has such a favorable reputation among skiers and snowboarders that it has some control over the lift ticket prices. Read the requirements Requirement 1. Would Mountain Point emphasize target pricing or cost-plus pricing? Why? Mountain Point should emphasize a approach to pricing because it has been able to differentiate its ski resort from others in the area. Because of its good reputation, managers will have control over pricing. Of course, thdy still need to consider whether the price is within the range customers are willing to pay Requirement 2. If other resorts in the area charge $87 per day, what price should Mountain Point charge? Complete the following table to calculate the price Mountain Point should charge per ift ticket. Plus: Plus Divided by: Price per lift ticket Choose from any storent Complete the following table to calculate the price Mountain Point should cl > ES Desired profit Fixed costs Number of skiers / snowboarders Target revenue Total costs Total variable costs Choose from any list or enter any number in the input fields and then conting bhasize target pricing or cost-plus pricing? Why? Requirements 1. Would Mountain Point emphasize target pricing or cost-plus pricing? Why? 2. If other resorts in the area charge $87 per day, what price should Mountain Point charge? Print Done e $33,000,000 for the ski season. The resort serves about 725,000 s resort has such a favorable reputation among skiers and snowboarder irements. t 1. Would Mountain Point emphasize target pricing or cost-plus pricing? pint should emphasize a approach to pricing because it has bee managers will have ing. Of course, they still need to cost-plus ent 2. If other resorts in the target per day, what price should Mounta = the following table to calculate the price Mountain Point should charge per lift tic esort has such a favorable reputation among skiers and snow rements. 1. Would Mountain Point emphasize target pricing or cost-plus nt should emphasize a V approach to pricing because it anagers will have control over pricing. Of course, they still ent 2. If other resorts no Serge $87 per day, what price should the following table to some ice Mountain Point should charge ed by: per lift ticket
