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Business, 12.11.2019 05:31 Yuii

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 20 % return on the company's $ 110 million of assets. the company incurs primarily fixed costs to groom the runs and operate the lifts. winterparadises projects fixed costs to be $ 38 comma 200 comma 000 for the ski season. the resort serves 875 comma 000 skiers and snowboarders each season. variable costs are $ 9 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 winterparadises emphasize target costing or cost-plus pricing. why?

2. if other resorts in the area charge $ 58 per day, what price should winterparadises charge?

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