equirement 1. If SnowDreams cannot reduce its costs, what profit will it earn? State your answer in dollars and as a percent of assets. Will investors be happy with the profit level? Complete the following table to calculate SnowDreams' projected income. Revenue at market price Less: Total costs Operating income
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- Keleher Industries manufactures pet doors and sells them directly to the consumer via their web site. The marketing manager believes that if the company invests in new software, they will increase their sales by 10%. The new software will increase fixed costs by $400 per month. Prepare a forecasted contribution margin income statement for Keleher Industries reflecting the new software cost and associated increase in sales. The previous annual statement is as follows:SnowDreams 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% return on the company's $115 million of assets. The company incurs primarily fixed costs to groom the runs and operate the lifts. SnowDreams projects fixed costs to be $43,500,000 for the ski season. The resort serves 900,000 skiers and snowboarders each season. Variable costs are $10 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 SnowDreams emphasize target costing or cost-plus pricing. Why? 2. If other resorts in the area charge $66 per day, what price should SnowDreams charge? 1. Would SnowDreams emphasize target costing or cost-plus pricing. Why? SnowDreams should emphasize a favorable reputation, managers will have are willing to pay approach to pricing because it has been able to differentiate its ski resort from…Winter Sports 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 17% return on the company's $115 million of assets. The company incurs primarily fixed costs to groom the runs and operate the lifts. Winter Sports projects fixed costs to be $44,000,000 for the ski season. The resort serves 775,000 skiers and snowboarders each season Variable costs are $7 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 Winter Sports emphasize target costing or cost-plus pricing Why? 2 If other resorts in the area charge $66 per day, what price should Winter Sports charge? 1. Would Winter Sports emphasize target costing or cost-plus pricing Why? Winter Sports should emphasize a approach to pricing because it has been able to differentiate its ski resort from others in the area. Because of its favorable…
- SnowDreams 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 17% return on the company's $105 million of assets. The company incurs primarily fixed costs to groom the runs and operate the lifts. SnowDreams projects fixed costs to be $36,600,000 for the ski season. The resort serves 825,000 skiers and snowboarders each season. Variable costs are $8 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 SnowDreams emphasize target costing or cost-plus pricing. Why? 2. If other resorts in the area charge $67 per day, what price should SnowDreams charge? control over pricing. Of course, they still need to consider whether the cost-plus price is within the range customers are willing to pay. 2. If other resorts in the area charge $67 per day, what price should SnowDreams charge? Complete the…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 $156,000,000 of assets. The company primarily incurs fixed costs to groom the runs and operate the lifts. Winter Run projects fixed costs to be $33,000,000 for the ski season. The resort serves about 660,000 skiers and snowboarders each season. Variable costs are about $11 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 requirements1. Requirement 1. Would Winter Run emphasize target pricing or cost-plus pricing? Why? Winter Run should emphasize a cost-plus 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 some control over…Mountaintop golf course is planning for the coming season. Investors would like to earn a 12% return on the company’s $45,000,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $25,000,000 for the golfing season. About 430,000 golfers are expected each year. Variable costs are about $17 per golfer. Mountaintop golf course has a favorable reputation in the area and therefore, has some control over the price of a round of golf. Using a cost-plus approach, what price should Mountaintop charge for a round of golf.
- Rocky Pines golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $49,000,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $25,000,000 for the golfing season. About 450,000 golfers are expected each year. Variable costs are about $16 per golfer. Rocky Pines golf course has a favorable reputation in the area and therefore, has some control over the price of a round of golf. Using a cost - plus approach, what price should the course charge for a round of golf? (Round the final answer to the nearest cent.) OA. $84.62 B. $16.00 O C. $71.56 OD. $121.96 1Mountaintop golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $50,000,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $24,000,000 for the golfing season. About 440,000 golfers are expected each year. Variable costs are about $20 per golfer. Mountaintop golf course is a price-taker and won't be able to charge more than its competitors who charge $102 per round of golf. What profit will it earn as a percent of assets? Question 39 options: Profit of 24.16% Profit of 152.44% Loss of 111.41% Loss of 24.16%Rocky Pines golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $47,000,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $22,000,000 for the golfing season. About 450,000 golfers are expected each year. Variable costs are about $16 per golfer. The Rocky Pines golf course is a price-taker and won't be able to charge more than its competitors who charge $85 per round of golf. What profit (loss) will it earn in terms of dollars? $(22,000,000) $1,450,000 $9,050,000 $(9,050,000)
- Riverview golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $47,000,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $11,000,000 for the golfing season. About 450,000 golfers are expected each year. Variable costs are $15 per golfer. The Riverview golf course is a price-taker and won't be able to charge more than its competitors who charge $60 per round of golf. What profit will Riverview earn in terms of dollars? $14,890,000 $5,640,000 $21,360,000 $9,250,000"Disk City, Inc., is a retailer for digital video disks. The projected net income for the current year is $200,000 based on a sales volume of 200,000 video disks. Disk City has been selling the disks for $16 each. The variable costs consist of the $10 unit purchase price of the disks and a handling cost of $2 per disk. Disk City’s annual fixed costs are $600,000. Management is planning for the coming year, when it expects that the unit purchase price of the video disks will increase 30 percent. (Ignore income taxes.). "Required: 1.Calculate Disk City’s break-even point for the current year in number of video disks. 2.What will be the company’s net income for the current year if there is a 10 percent increase in projected unit sales volume? 3.What volume of sales (in dollars) must Disk City achieve in the coming year to maintain the same net income as projected for the current year if the unit selling price remains at $16? 4.In order to cover a 30 percent increase in…Disk City, Inc., is a retailer for digital video disks. The projected net income for the current year is $200,000 based on a sales volume of 200,000 video disks. Disk City has been selling the disks for $16 each. The variable costs consist of the $10 unit purchase price of the disks and a handling cost of $2 per disk. Disk City's annual fixed costs are S600,000. Management is planning for the coming year, when it expects that the unit purchase price of the video disks will increase 30 percent. (Ignore income taxes.) Required: 1. Calculate Disk City's break-even point for the current year in number of video disks.