Additional information - The capital invested in the motel is $1,020,000. The partnership's target return on investment is 30%. Blodgett expects demand for rooms to be uniform throughout the year. He plans to price the rooms at full cost plus a markup on full cost to earn the target return on investment. Print Done John Blodgett is the managing partner of a business that has just finished building a(n) 80-room motel. Blodgett anticipates that he will rent these rooms for 20,800 nights next year (or 20,800 room-nights). All rooms are similar and will rent for the same price. Blodgett estimates the following operating costs for next year: (Click the icon to view the operating costs.) i (Click the icon to view the additional information.) Required 1. What price should Blodgett charge for a room-night? What is the markup as a percentage of the full cost of a room-night? 2. Blodgett's market research indicates that if the price of a room-night determined in requirement 1 is reduced by 10%, the expected number of room-nights Blodgett could rent would increase by 15%. Should Blodgett reduce prices by 10%? Show your calculations. Requirement 1. What price should Blodgett charge for a room-night? What is the markup as a percentage of the full cost of a room-night? Operating costs Variable operating costs $9.50 per room-night Begin by finding the price per room-night. Selecting the labels for the formula, and then enter the amounts to calculate the price per room-night. (Round your answers to the nearest cent. Fixed costs + Price per room-night + per room-night Salaries and wages Maintenance of building and pool Other operating and administration costs $ 195,000 62,000 146,000 $ 403,000 Total fixed costs Print Done