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A motel has provided you with the following information and has asked you to determine the variable cost per room. Revenue=725,000 FixedCosts= 395,000 Desired Profit=

A motel has provided you with the following information and has asked you to determine the variable cost per room.

Revenue=725,000

FixedCosts= 395,000

Desired Profit=

175,000

Average Room Rate= $75.25

What is the Variable Cost per room?

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