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 cam a 15% return on investment on the company's $148,500,000 of assets. The company primarily incurs fxed costs to groom the runs and operate the lifts. Mountain Point projects fixed costs to be $35,000,000 for the ski season. The resort serves about 725,000 skiers and snowboarders each season. Variable costs are about S13 per guest. Currently, the resort has such a favorable reputation among skiers and snowboarders that it has some control over the 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 boen able to differentiate its ski resort from others in the area. Because of its good reputation, managers will have sing. Of course, they still need to consider whether the price is within the range customers are willing cost-plus Requirement 2. If other resorts in the target per day, what price should Mountain Point charge? Complete the following table to calculate the price Mountain Point should charge per ift ticket. HINT: Keep in mind that target revenue will have to cover all of the company's costs plus its desired profit to pay . LO Plus: Plus Divided by 2 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 earn a 15% retur on investment on the company's $148,500,000 of assets. The company primarily incurs fixed costs to groom the runs and operate the lifts. Mountain Point projects foxed costs to be $35,000,000 for the ski season. The resort serves about 725,000 skiers and snowboarders each season. Variable costs are about $13 per guest Currently, the resort has such a favorable reputation among skiers and snowboarders that it has some control over the lift licket prices Read the requirements 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, they still need to consider whether the price is within the range customers are willing to pay no Requirement 2. other resorts Complete the following table to company's costs plus its desire irge $88 per day, what pelce should Mountain Point charge? ice Mountain Point should charge per lit ticket. HINT: Keep in mind that target revenue will have to cover all of the some Plus: Plus Divided by Price per ift ticket Given Mountain Point's favorable reputation, they stion ountain ski resort. The company is planning its lift ticket pricing for the coming ski season. Invest -8,500,000 of assets. The company primarily incurs fixed costs to groom the runs and operate th ski season. The resort serves about 725,000 skiers and snowboarders each season. Variable o rable reputation among skiers and snowboarders that it has some control over the lift ticket price approach to pricing because it has been able to differentiate its ski resort from others control over pricing. Of course, they still need to consider whether the price is with i Requirements X he nue cu of 1. Would Mountain Point emphasize target pricing or cost-plus pricing? Why? 2. If other resorts in the area charge $88 per day, what price should Mountain Point charge? Print Done
