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Please help me with Requirement 2. 1. If Winter Runs cannot reduce its costs, what profit will it earn? State your answer in dollars and

Please help me with Requirement 2.image text in transcribedimage text in transcribedimage text in transcribed

1. If Winter Runs 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 Winter Runs has found ways to cut its fixed costs to $31,500,000. What is its new target variable cost per skier/snowboarder? Investors would like to earn a 11% return on investment on the company's $156,000,000 of assets. Winter Runs projects fixed costs to be $33,000,000 for the ski season. The resort serves about 660,000 skiers and snowboarders each season. Variable costs are about $9 per guest. Last year, due to its favorable reputation, Winter Runs was a price-setter and was able to charge $3 more per lift ticket than its competitors without a reduction in the number of customers it received. Assume that Winter Runs' reputation has diminished and other resorts in the vicinity are charging only $82 per lift ticket. Winter Runs has become a price-taker and will not be able to charge more than its competitors. At the market price, Winter Runs managers believe they will still serve 660,000 skiers and snowboarders each season. Requirement 1. If Winter Runs 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? Complete the following table to calculate Winter Runs' projected income. (Round the percentage to the nearest hundredth percent, X.XX\%.) Winter Runs's projected operating income (profit) as a percent of assets amounts to % Will investors be happy with this profit level? No, because the expected profit level does not meet the investors' target return on assets. Requirement 2. Assume Winter Runs has found ways to cut its fixed costs to $31,500,000. What is its new target variable cost per skier/snowboarder? Complete the following table to calculate Winter Runs' new target variable cost per customer. (Round your final answer to the nearest cent.)

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