Skiable Acres operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season.

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Read the requirements.

Requirement $1.$ If Skiable Acres cannot 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?

Complete the following table to calculate Skiable Acres' projected income.

Revenue at market price

Requirements

Less: Total costs

Operating income

If Skiable Acres cannot 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?

Assume Skiable Acres has found ways to cut its fixed costs to $$30,000,000.$ What is its new target

variable cost per skier$/$snowboarder$?$