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WinterParadises operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing...

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Accounting

WinterParadises 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 19% 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 $37,200,000 for the ski season. The resort serves 830,000 skiers and snowboarders each season. Variable costs are $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.
Would WinterParadises emphasize target costing or cost-plus pricing. Why?
If other resorts in the area charge $60 per day, what price should WinterParadises charge?
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