Business, 18.06.2020 20:57 jenniferkane408

Mountain Point 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 15% returned on investment on the company's 165 comma 000$165,000,000 of assets. The company primarly incurs fixed costs to groom the runs and operate the lifts. Maountain Point projects fixed costs to be $36 comma 000 comma 000$36,000,000 for the ski season. The resort serves about 750 comma 000750,000 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. Requirements 1. would Mountain Point emphasize target pricing or cost-plus pricing? Why? Mountain Point should emphasize a cost-plus target 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 No some control over pricing. Of course, they still need to consider whether the Cost-plus target price is within the range customers are willing to pay.

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

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