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question 3 please help! SnowDream operates a Rocky Mountain ski resort. The company is planning its lift teket pricing for the coming shi season investors
question 3 please help!
SnowDream operates a Rocky Mountain ski resort. The company is planning its lift teket pricing for the coming shi season investors would like to eam a 15 \$ return on itvestment an the company/s $148,500,000 of assets. The company primanly incurs fixed costs to groom the runs and operate the lifts. SnowDream projects fixed costs to be 355.000 .000 for the cki season. The resert serves about 725.000 skiers and snewboarders each season. Variable costs are about 59 per guest, Cumently, the resort has such a favorable reputation ameng skiers and snowbearders that it has some control over the lift ticket pricns. Requirement 1. Would SnowDream emphasize target pricing or cost-plus prieing? Why? SnowDream sheuld emphasize a approach to pricing because it has been able to differentiate its ski resort trom others in the aroa. Because of its good ruputation, managen will have centrol aver priting. Of course, they stili need to consider whether the price is witin the range customens are willng to pay. Requirement 2. If other resorts in the area charge $84 per day, what price should SnowDream charge? Cemplete the following tabie to calculate the price SnowDream should charge per if ticket. SnowDream shoukd emphasize a cost-plus approach to pricing because it has been able to difterentiate its ski resert from others in the area. Aecause of its good repulaton, managais will have control over pricing. Of course, they still nond to consider whether the price is within the range customers are witing to pay Requirement 2. If other resorts in the area charge 54 per c price should snowbream charpe? Complete the folowing table to calculate the price SnowDream should charge per in ticket. Requirements 1. Would SnowDream emphasize target pricing or cost-plus pricing? Why? 2. If other resorts in the area charge $84 per day, what price should SnowDream charge Step by Step Solution
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