Winter Run 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 11% return on investment on the​ company's...

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

of 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 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

Requirement 1. Would

emphasize target pricing or​ cost-plus pricing?​ Why?

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​ course, they still need to consider whether the

price is within the range customers are willing to pay.

Requirement 2. If other resorts in the area charge

per​ day, what price should

​charge?

Complete the following table to calculate the price

should charge per lift ticket.

Given

favorable​ reputation, they