SnowParadise 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 $$135,000,000$ of assets. The company primarily incurs fixed costs to groom the runs and operate the lifts. SnowParadise projects fixed costs to be $$36,000,000$ for the ski season. The resort serves about $750,000$ skiers and snowboarders each season. Variable costs are about $$7$ 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 SnowParadise emphasize target pricing or cost$-$plus pricing? Why?

Snowparadise should emphasize a $,$ approach to pricing because it has been able to differentiate its skj 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 $$79$ per day, what price should SnowParadise charge?

Complete the following table to calculate the price SnowParadise should charge per lift ticket.

$\backslash$table$[[$Fixed costs,$$,36,000,000$