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please help! Forever Snew operates a Rocky Mountain ski resort. The company is planring its ift bicket pricing for the caming ski season. Investors would
please help! Forever Snew operates a Rocky Mountain ski resort. The company is planring its ift bicket pricing for the caming ski season. Investors would like to earn a 15% rehum an invesiment on the company/s $135,000,000 of assets. The company primanly incurs foved costs to groom the nuns and operate the ifts. Forever Snow projects fixed costs to be $35,000,000 for the ski season. The resort serves about 750,000 skiers and snowboarders each season. Varlable costs are about $7 per guest. Curently, the resort has such a favarable reputation ameng skien and snowboarders that is has some control over the lift ticket prices. Requirement 1. Would Forever Snow emphasize target pricing or cost-plus pricing? Why? Forever Snow should emphasize a approach to pricing because it has been able to ditorentiate its sh rotort from others in the area. Becaese of its good repitation, manech Will have control over pricing. Of course, they still need 1 c onsider whether the price is with the range custoeners are willing to pay. Requirement 2. If other resorts in the area charge $77 per day, what price should Forever Snow charge? Corpplete the following table to calculate the price Forever Snow should charge per lift toket. Pus: Pius: Divided by Price per int ticket Requirements 1. Would Forever Snow emiphasize target pricing or cost-plus pricing? Why? 2. If other resorts in the area charge $77 per day, what price should Forever Snow charge
please help!
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