S8-3 (similar to) Question Help WinterParadise operates a Rocky Mountain ski resort. The company s planning s lif ticket p ing for he coming ski season. Investors would like to earn a 9% return on te compan s S110 million o assets. The company incurs pnman y ed costs to groom the runs and operete the litts WinterParadise projects fixed costs to be $37,200,000 for the ski season. The resort serves ahout 830,000 skiers and snowboarders each season Vanable costs are $12 per guest. The resort hed such a tavorable reputation among skiers and snowboarders that it had some control over the lift ticket prices. Assume that to Paradise's reputation has dim ist and other sorts in vi nity are managers believe they will shill serve 83 D skiers and snowboarders each season arg ng only $6 pe lin ticket wint Paradise has become a price ker and o t be able to ct ge more han i s r p titors the market price, r Paradises Read the requirements Will investors be happy with this proft level? No, because the expected return on assets is less than the desired return on assels Stock prices may decline as a result. 2. Assumc that WintcrParadise has found ways to cut its fixed costs to 526.41 millin. What is cost per skierisnowboarder? Compare this to the current variable cost per skirsnowboar Complete the following table to calculate WinterParedise's new target variable cost per customer. (Round your final answer to the nearest cent.) its new target variable der. Comment on your resuits Less Less Target total vanable costs Divided by Target variable cost per skie snowboarder Score: 0.65 of 3 pts 4of5 HW Score: 46.52%, 4.65 of 10 pts (%) S83 (similar to) Question Help WinterParadise operatas a Racky Mountain ski resort. The company is plenning its ift ticket pricing for the coming ski season. Investors would like to eam a 19% retum on the company's $110 milion of assets. The company incurs primarily fixed costs to groom the runs and operate the lits WinterParadise projects txed costs to be $3r 200,DI tor the ski season. The resort serves about 830, d00 skiers and snowboarders esch saason Vanable costs are $12 per guest The resort had such a tavorable reputation among skiers and snowboarders that it had some control over the lift ticket prices. Assume that WinterParadise's reputation has diminished and other resorts in the vicinity are charging only S60 per lift ticket. WinterParadise has become a price taker and wont be able to charge more than its competitors. At the market price, WinterParadise?s managers believe they will still serve 830,000 skiers arnd snowboarders each season Read the requirements . It WinterParadise cant reduce its costs, what protit will it eam2 State your answer in dolars and as a percent ot assets Will investors be happy with the protit level? Show your analysis Complete the following table to calculate WinterParadises projected income and excess proit or shral Use parentheses or a minus sign ta shew a proht shorttal) Revenue at market price Less Total costs S 49,800 000 47.160 000 S 2,540 0M 0 900 iC income Compared to the desired operaling incorie of Expected excess profit (profit shortfall) (Round the percentage lo thB nearest hundredth porcent, X XX% ) As a percenlage of assels, WinlerParadise's projccled profit is