Requirements 1. If Winter Runs cannot reduce its costs, what profit will it earn? State your answer in dollars and 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 $34,800,000. What is its new targe variable cost per skier/snowboarder? More info Investors would like to earn a 12% return on investment on the company's $111,000,000 of assets. Winter Runs projects fixed costs to be $37,000,000 for the ski season. The resort serves about 680,000 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 $5 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 $78 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 680,000 skiers and snowboarders each season