Save Score: 0 of 1 pt 2 of 4 (1 complete) HW Score: 25%, 1 of 4 pts S8-3 (similar to) Question Help SnowDelight operates a Rocky Mountain ski resort. The company is planning its lif ticket pricing for the coming ski season Investors would like to earn a 17% return on the company's $115 milion of assets. The company incurs primarily fixed costs to groom the runs and operate the lifts. SnowDelight projects fixed costs to be $44,000,000 for the ski season. The resort serves about 775.000 skiers and snowboarders each season. Variable costs are $7 per guest. The resort had such a favorable reputation among skiers and snowboarders that it had some control over the in ticket prices Assume that SnowDelight's reputation has diminished and other resorts in the vicinity are charging only $66 por lift ticket. SnowDelight has become a price-taker and won't be able to charge more than its competitors. At the market price, SnowDelight's managers believe they will still serve 775.000 skiers and snowboarders each season Read the requirements 1. If SnowDelight can't 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? Show your analysis Complete the following table to calculate SnowDelight's projected income and excess profit or shortfall. (Use parentheses or a minus sign to show a profit shortfal.) Revenue at market price 51,150,000 Requirements Less: Total costs 5.425,000 Operating income 45,725.000 Compared to the desired operating income of 1. If SnowDelight can't 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? Show your Expected excess profit (profit shortfall) analysis 2. Assume that SnowDelight has found ways to cut its fixed costs to $28.5 milion. What is its new target variable cost per skiersnowboarder? Compare this to the current variable Enter any number in the edit fields and then click Check Answer cost per sker/snowboarder. Comment on your results. parts remaining