Save Homework: .... Question 3, SM10-3 (bo HW Score: 38,48%, 38,48 of 100 points Part 1 of 4 Points: 0 of 5 Skiable Acres operates a Rocky Mountain ski resort. The company is planning its lin ticket pricing for the coming ski season. Click the icon to view the information) Read the requirements Requirement 1. 1 Sklable Acres cannot reduce its costs, what profit will it eam? 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 Skiable Acres projected income Revenue at market price Less: Total costs Operating income 0 More info Investors would like to earn a 10% return on investment on the company's $270,000,000 of assets. Skiable Acres projects fixed costs to be $31,000,000 for the ski season. The resort serves about 725,000 skiers and snowboarders each season. Variable costs are about $8 per guest Last year, due to its favorable reputation, Skiable Acres was a price-sotter and was able to charge $3 more per lift ticket than its competitors without a reduction in the number of customers it received Assume that Skiablo Acres' reputation has diminished and other resorts in the vicinity are charging only $85 per it ticket. Skiable Acres has become a price-taker and will not be able to charge more than its competitors. At the market price, Skiable Acres managers believe they will still serve 725,000 skiers and snowboarders each season. Print Done Skiable Acres operates a Rocky Mountain ski resort. The company is planning its lit ticket pricing for the coming ski season. Click the icon to view the information) Read the requirements Requirement 1. If Skiablo Acres cannot reduce its costs, what profit will it ear? Stato your answer in dollars and as a percent of assets. Wil investors be happy with the profit level? Complete the following table to calculate Skiablo Acres projected income. Revenue at market price Less: Total costs Operating income - Requirements 1. If Skiable Acres cannot reduce its costs, what profit will it eam? State your answer in dollars and as a percent of assets. Will investors be happy with the profit level? 2. Assume Skiable Acres han found ways to cut its fixed costs to $30,000,000. What is its new target variable cost per sker/snowboarder? Print Done