Question list Question 4 Read the requirements. Question 5 Question 6 Question 7 Requirement 1. If Mountain Points 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 Mountain Points' projected income. Revenue at market price Less: Total costs Operating income Requirements 1. If Mountain Points 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 Mountain Points has found ways to cut its fixed costs to $31,500,000. What is its new target variable cost per skier/snowboarder? More info Investors would like to earn a 14% return on investment on the company's $183,750,000 of assets. Mountain Points projects fixed costs to be $33,000,000 for the ski season. The resort serves about 725,000 skiers and snowboarders each season. Variable costs are about $7 per guest. Last year, due to its favorable reputation, Mountain Points was a price-setter and was able to charge $4 more per lift ticket than its competitors without a reduction in the number of customers it received. Assume that Mountain Points' reputation has diminished and other resorts in the vicinity are charging only $84 per lift ticket. Mountain Points has become a price-taker and will not be able to charge more than its competitors. At the market price, Mountain Points managers believe they will still serve 725,000 skiers and snowboarders each season