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SnowDelight operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season: Investors would like to
SnowDelight 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. SnowDelight 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 Curement Requirement 2. If other resorts in the area charge $84 per day, what price should SnowDelight charge? Complete the following table to calculate the price SnowDelight should charge per lift ticket. Plus: Plus Divided by Price per lift ticket
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