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 earn 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. Read the requirements. Requirement 1. Would Skiable Acres emphasize target pricing or cost-plus pricing? Why? Skiable Acres should emphasize a cost-plus approach to pricing because it has been able to differentiate its ski resort from others in the area. Because of its good reputation, managers will have some control over pricing. Of course, they still need to consider whether the cost-plus price is within the range customers are willing to pay Requirement 2. If other resorts in the area charge $85 per day, what price should Skiable Acres charge? Complete the following table to calculate the price Skiable Acres should charge per lift ticket. Number of skiers / snowboarders Plus: Total costs Plus: Divided by: Price per lift ticket i Requirements 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? Print Done