Skiable Acres operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. Investors would like to earm a 10% return on investment on the company's $270,000,000 of assets. The company primarily incurs fixed costs to groom the runs and operate the lifts. 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. Currently, the resort has such a favorable reputation among skiers and snowboarders that it has some control over the lift ticket prices. Requirements: Be sure to show all work to arrive at the answers below and include text labels for items in your calculations so it is clear what you did. 1. Would Skiable Acres emphasize target pricing or cost-plus pricing? Why? 2. If other resorts in the area charge $85 per day, what price should Skiable Acres charge? 3. Assume that Skiable Acres's reputation has diminished and other resorts in the vicinity are charging only $85 per lift 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. 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