You are considering the purchase of a hotel with 20 rooms. If you buy the hotel, the fixed costs are expected to be \($200,000\) per year. The variable costs of renting a room for one night include \($20\) for maid service and \($5\) for utilities and other costs. Assume no taxes.

a. If you expect to rent the rooms for \($90,\) how many rooms must you rent during the year to break even?

b. If you want to have a profit of \($50,000\) and expect to be at 70 percent of capacity over 365 days of the year, what price per room would you have to charge?