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Please help with this one. Thanks in advance! Winter Dreams operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for

Please help with this one. Thanks in advance! image text in transcribed
Winter Dreams 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% return on the company's $115 million of assets. The company incurs primarily fixed costs to groom the runs and operate the lifts. Winter Dreams projects fixed costs to be $43,500,000 for the ski season. The resort serves 900,000 skiers and snowboarders each season. Variable costs are $10 per guest. Currently, the resort has such a favorable reputation among skiers and snowboarders that it has some control over the lift ticket prices. 1. Would Winter Dreams emphasize target costing or cost-plus pricing. Why? 2. If other resorts in the area charge $66 per day, what price should Winter Dreams charge? 1. Would Winter Dreams emphasize target costing or cost-plus pricing. Why? Winter Dreams should emphasize a approach to pricing because it has been able to differentiate its ski resort from others in the area. Because of its favorable 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. 2. If other resorts in the area charge $66 per day, what price should Winter Dreams charge? Complete the following table to calculate the price Winter Dreams should charge. (Round your answer to the nearest cent.) Plus: Plus: Target revenue Divided by: Price per lift ticket If other resorts in the area charge 566 per day, what price should Winter Dreams charge? The price is be able to charge competing ski resorts in the area. Given Winter Dreams reputation, they should a day without affecting their volume

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