SnowParadise 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 10 % return on investment on the company's $ 270,000 of assets. The company primarily incurs fixed costs to groom the runs and operate the lifts. SnowParadise projects fixed costs to be $ 31,000 for the ski season. The resort serves about 725,000 skiers and snowboarders each season. Variable costs are about $ 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. Would SnowParadise emphasize target pricing or cost-plus pricing? Why?
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