for next year (Click the icon to view the operating costs.) (Click the icon to view additional information.) Read the requirements. More info The capital invested in the motel is $1,100,000. The partnership's target return on investment is 25%. Basset 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. Requirement 1. What price should Basset charge for a room-night? What is the markup as a percentage of the full cost of a room-night? Begin by selecting the formula, then enter the amounts and solve for the room price per night. What is the markup as a percentage of the full cost of a room-night? (Enter the markup as a percentage, X%.) Should Basset reduce prices by 10% ? Because the contribution margin at the reduced price is the original contribution margin at the selling price you calculated in requirement 1 , Basset reduce the price of the rooms. Data table Variable operating costs Fixed costs Salaries and wages Maintenance of building and pool Other operating and administration costs Total fixed costs for next year (Click the icon to view the operating costs.) (Click the icon to view additional information.) Read the requirements. More info The capital invested in the motel is $1,100,000. The partnership's target return on investment is 25%. Basset 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. Requirement 1. What price should Basset charge for a room-night? What is the markup as a percentage of the full cost of a room-night? Begin by selecting the formula, then enter the amounts and solve for the room price per night. What is the markup as a percentage of the full cost of a room-night? (Enter the markup as a percentage, X%.) Should Basset reduce prices by 10% ? Because the contribution margin at the reduced price is the original contribution margin at the selling price you calculated in requirement 1 , Basset reduce the price of the rooms. Data table Variable operating costs Fixed costs Salaries and wages Maintenance of building and pool Other operating and administration costs Total fixed costs