Vill investors be happy with this profit level? No, because the expected profit level does not meet the investors' target return on assets. Requirement 2. Assume SnowParadise has found ways to cut its fixed costs to $32,000,000. What is its new target variable cost per skier/snowboarder? Complete the following table to calculate SnowParadiso's new target variable cost per customer. (Round your final answer to the nearest cent) Revenue at market price Less: Desired profit Target full cost Less: Reduced level of fixed costs Target total variable costs Divided by number of sklers / snowboarders Target variable cost per skler / snowboarder Investors would like to earn a 14% return on investment on the company's $183,750,000 of assets. SnowParadise projects fixed costs to be $33,000,000 for the ski season. The resort serves about 725,000 skiers and snowboarders each season. Variable costs are about $10 per guest. Last year, due to its favorable reputation, SnowParadise 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 SnowParadise's reputation has diminished and other resorts in the vicinity are charging only $88 per lift ticket. SnowParadise has become a price-taker and will not be able to charge more than its competitors. At the market price, SnowParadise managers believe they will still serve 725,000 skiers and snowboarders each season. SnowParadiso operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. Requirement 1. It SnowParadise cannot reduce its costs, what profit will it eam? State your answer in dollars and as a percent of assets. Will investors be happy with the profit level? Complete the following table to calculate SnowParadiso's projected income, Revenue at market price $ 63,800,000 40.250,000 Loss: Total costs $ 23,550,000 Operating income Round the percentage to the nearest hundred percent, XXX%) SnowParadise's projected operating Income (profit) as a percent of assets amounts to 1282 % Will investors be happy with this profit level? No, because the expected proft level does not meet the investors' target return on assets. Requirement 2. Assume SnowParadise has found ways to cut its foved costs to $32,000,000. What is its new target variable cost per skler/snowboarder? Complete the following table to calculate SnowParadise's new target variable cost per customer. (Round your final answer to the nearest cont.) 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 skler / snowboarder Heln me solve this Damadonna
