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THIS IS ALL THE INFORMATION I HAVE FOLLOW EACH REQUIREMENT TO SOLVE. 2. Forever Snow operates a Rocky Mountain ski resort. The company is planning

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THIS IS ALL THE INFORMATION I HAVE FOLLOW EACH REQUIREMENT TO SOLVE.

2. Forever Snow 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. Forever Snow 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 $12 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 of Forever Snow 15% @CNUM{$135000000} 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 return on investment on the company's Forever Snow @CNUM{$36000000} @CNUM{750000} assets. The company primarily incurs fixed costs to groom the runs and operate the lifts. projects fixed costs to be for the ski season. The resort serves about skiers and @CURR{12} snowboarders each season. Variable costs are about 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 Forever Snow emphasize target pricing or cost-plus pricing? Why? Forever Snow should emphasize a (1) - _ approach to pricing because it has been able to differentiate its ski resort from others in the area. Because of its good reputation, managers will have (2) control over pricing. Of course, they still need to consider whether the (3) price is within the range customers are willing to pay Requirement 2. If other resorts in the area charge $86 per day, what price should Forever Snow charge? Complete the following table to calculate the price Forever Snow should charge per lift ticket. (4) Plus: (5) Plus: (7) Divided by: (9) Price per lift ticket Given Forever Snow's favorable reputation, they (10) Forever Snow Requirement 1. Would emphasize target pricing or cost-plus pricing? Why? no cost-plus Forever Snow target some should emphasize a approach to pricing because it has been able to differentiate its ski resort from others in the area. Because of its good reputation, managers will have control over pricing. Of cost-plus target course, they still need to consider whether the price is within the range customers are willing to pay @CURR{86) Forever Snow Requirement 2. If other resorts in the area charge per day, what price should charge? Forever Snow Complete the following table to calculate the price should charge per lift ticket. Ulevel JHUW Complete the following table to calculate the price should charge per lift ticket. should be able to charge the price above without affecting their volume. Forever Snow won't be able to charge the price above without affecting their volume. Given 's favorable reputation, they 1: Requirements 1. Would Forever Snow emphasize target pricing or cost-plus pricing? Why? 2. If other resorts in the area charge $86 per day, what price should Forever Snow charge? (2) O (3) (4) O (1) O cost-plus O target no some cost-plus target O Target revenue Total costs Total variable costs Desired profit Fixed costs Number of skiers / snowboarders O (5) O O Desired profit O Fixed costs Number of skiers / snowboarders Target revenue Total costs Total variable costs (8) O (6) O O Desired profit Fixed costs Number of skiers / snowboarders Target revenue Total costs Total variable costs (1) O Desired profit O Fixed costs Number of skiers / snowboarders Target revenue Total costs Total variable costs Desired profit Fixed costs Number of skiers / snowboarders O Target revenue Total costs Total variable costs (10) O (9) O Desired profit O Fixed costs Number of skiers / snowboarders Target revenue Total costs Total variable costs should be able to charge the price above without affecting their volume. won't be able to charge the price above without affecting their volume. 2: Requirements 1. Forever Snow Would emphasize target pricing or cost-plus pricing? Why? @CURR{86) Forever Snow If other resorts in the area charge per day, what price should charge? 2

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