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SnowDreams operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. (Click the icon to view

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SnowDreams operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. (Click the icon to view the information.) Read the requirements Requirement 1. If SnowDreams cannot reduce its costs, what profit will it earn? State your answer in dollars and as a percent of as the profit level? Complete the following table to calculate SnowDreams' projected income. Revenue at market price Less: Total costs Operating income (Round the percentage to the nearest hundredth percent, X.XX%.) SnowDreams's projected operating income (profit) as a percent of assets amounts to Will investors be happy with this profit level? % Requirement 2. Assume SnowDreams has found wave to cut its five rate tn 79 on hint into Requirement 2. Assume SnowDreams has found ways to cut its fixed costs to $28,000,000. What is its new target variab Complete the following table to calculate SnowDreams' new target variable cost per customer. (Round your final answer te Revenue at market price Less: Desired profit Target full cost Less: Reduced level of fixed costs Target total variable costs Divided by number of skiers / snowboarders Target variable cost per skier / snowboarder - Requirements 1. If SnowDreams 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? 2. Assume SnowDreams has found ways to cut its fixed costs to $28,000,000. What is its new target variable cost per skier/snowboarder? Print Done More info - X owDrea Will inv tablet Investors would like to earn a 10% return on investment on the company's $260,900,000 of assets. SnowDreams projects fixed costs to be $30,000,000 for the ski season. The resort serves about 710,000 skiers and snowboarders each season. Variable costs are about $8 per guest. Last year, due to its favorable reputation, SnowDreams was a price-setter and was able to charge $3 more per lift ticket than its competitors without a reduction in the number of customers it received. Assume that SnowDreams' reputation has diminished and other resorts in the vicinity are charging only $84 per lift ticket. SnowDreams has become a price-taker and will not be able to charge more than its competitors. At the market price, SnowDreams managers believe they will still serve 710,000 sklers and snowboarders each season. rice e to the cted ope py with th Print Done ume SnowDreams has found ways to cut its fixed costs to $28,000,000. What is its new target variable cost per skiersnowheard

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