SnowDream 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 15% return on investment on the company's $135,000,000 of assets. The company primarily incurs fixed costs to groom the runs and operate the lifts. Snow Dream projects fixed costs to be $36,000,000 for the ski season. The resort serves about 750,000 skiers and er for snowboarders each season Variable costs are about $11 per quest. 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 5.10 Requirement 1. Would SnowDream emphasize target pricing or cost-plus pricing? Why? SnowDream should emphasize a cost-plus approach to pricing because it has been able to differentiate its ski resort from othors 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 $82 per day, what price should SnowDream charge? Complete the following table to calculate the price SnowDream should charge per lift ticket. ders'. Plus s Mis: ege Fc Plus: s. 10 Divided by: Price per lift ticket milar to) Question Help s a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. Investor turn on investment on the company's $135,000,000 of assets. The company primarily incurs fixed costs to groc e lifts. SnowDream projects fixed costs to be $36,000,000 for the ski season. The resort serves about 750,000 s season. Variable costs are about $11 per guest. Currently, the resort has such a favorable reputation among sk has some control over the lift ticket prices. nts. ould SnowDream emphasize target pricing or cost-plus pricing? Why? = gol emphasize a cost-plus approach to pricing because it has been able to differentiate its ski resort from others in hsider whether Requirements with 0 othel wing 1. Would SnowDream emphasize target pricing or cost-plus pricing? Why? 2. If other resorts in the area charge $82 per day, what price should SnowDream charge? Print Done et