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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
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% returned on investment on the company's 165 comma 000$165,000,000 of assets. The company primarly incurs fixed costs to groom the runs and operate the lifts. Maountain Point projects fixed costs to be $36 comma 000 comma 000$36,000,000 for the ski season. The resort serves about 750 comma 000750,000 skiers and snowboarders each season. variable costs are about 12 per guest. currently, the resort has such a favorable reputation among skiers and snowboarders that it has some control over the lift ticket prices. Requirements 1. would Mountain Point emphasize target pricing or cost-plus pricing? Why? Mountain Point should emphasize a ___________ cost-plus target 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_______________________ No some control over pricing. Of course, they still need to consider whether the __________________ Cost-plus target price is within the range customers are willing to pay
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