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 lift ticket prices. competitors. At the market price, Winter Sport's managers believe they will still serve 775,000 skiers and snowboarders each season. Read the requirements. Complete the following table to calculate Winter Sport's projected income and excess profit or shortfall. (Use parentheses or a minus sign to show a profit shortfall.) Requirements 1. If Winter Sport 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. 2. Assume that Winter Sport has found ways to cut its fixed costs to $28.5 million. What is its new target variable cost per skier/snowboarder? Assume investors want to earn a 17% return on assets. Compare this to the current variable cost per skier/snowboarder. Comment on your results. 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 lift ticket prices. competitors. At the market price, Winter Sport's managers believe they will still serve 775,000 skiers and snowboarders each season. Read the requirements. Complete the following table to calculate Winter Sport's projected income and excess profit or shortfall. (Use parentheses or a minus sign to show a profit shortfall.) Requirements 1. If Winter Sport 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. 2. Assume that Winter Sport has found ways to cut its fixed costs to $28.5 million. What is its new target variable cost per skier/snowboarder? Assume investors want to earn a 17% return on assets. Compare this to the current variable cost per skier/snowboarder. Comment on your results