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WinterSports operates a Rockyr Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. Investors would like to earn

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WinterSports operates a Rockyr 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 the company's $100 million of assets. The companyr incurs primarily xed costs to groom the runs and operate the lifts. WinterSports projects xed costs to be $33,?50.000 for the ski season. The resort serves 750,000 skiers and snowboarders each season. Variable costs are $10 per guest. Currently, the resort has such a favorable reputation among skiers and snowboarders that it. has some control over the lift ticket prices. 1. Would WinterSports emphasize target costing or costplus pricing. Why? 2. ti other resorts in the area charge $65 per day, what price should WinterSports charge? F ..... 'l 1. Would WinterSports emphasize target costing or costplus pricing. Why? WinterSports should emphasize 3 EV] approach to pricing because it has been able to differentiate its ski resort from others in the area. Because of its favorable reputation, managers will have 3: oontrol over pricing. Of course, they still need to consider whether the 3" price is within the range customers are willing to pay

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