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SnowParadise operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. Investors would like to
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 $165,000,000 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. Dequinctil 2. IN ONE TESUN in the area change ou pe may, what price su oral auist ullalye: Complete the following table to calculate the price SnowParadise should charge per lift ticket. Fixed costs Plus: Total variable costs Total costs Plus: Desired profit Target revenue 36000000 750000 Divided by: Price per lift ticket Number of skiers / snowboarders
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