Assume that SnowCastles reputation has diminished and other resorts in the vicin

Assume that SnowCastles reputation has diminished and other resorts in the vicinity are changing only $60 per lift ticket. SnowCastles has become a price-taker and wont be able to charge more than its competitors. At themarket price SnowCastles managers believe they will still serve 800000 skiers and snowboarders each season.1. If SnowCastles cant 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? Show your analysis.2. Assume that SnowCastles has found ways to cut itsfixed coststo $31 million. What is its new target variable cost per skier/snowboarder? Compare this to the current variable cost per skier/ snowboarder. Comment on your results.