WinterParadises operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing...
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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 return on the company's $ million of assets. The company incurs primarily fixed costs to groom the runs and operate the lifts. WinterParadises projects fixed costs to be $ for the ski season. The resort serves skiers and snowboarders each season. Variable costs are $ 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 costplus pricing. Why?
If other resorts in the area charge $ per day, what price should WinterParadises charge?
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