Aaron decides to rent out a spare bedroom on a part time basis for weary business travelers coming to his fair city. Aaron's bed-and-breakfast projects the following:

Monthly fixed costs $2500 Variable cost per occupied room per night $20 Price per occupied room per night $200

1. Assume the room can be occupied 15 nights per month. Calculate the total cost, total revenue, and the profit. (3 points each)

2. How many nights would the room have to be occupied per month in order to break even? (5 points)

3. If Aaron would like to gain $900 profit per month, at least how many nights the room has to be occupied? (4 points)

4. If Aaron would like to break even at 12 nights, how should he adjust the price of the room per night? (3 points)