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Business, 12.12.2019 00:31 gooberthebear8955

Mount 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 16% return on the company’s $109,375,000 of assets. the company primarily incurs fixed costs to groom the runs and operate the lifts. mount snow projects fixed costs to be $35,000,000 for the ski season. the resort serves about 700,000 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. 1. would mount snow emphasize target pricing or cost-plus pricing. why? 2. if other resorts in the area charge $83 per day, what price should mount snow charge?

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