= Homework: Chapter 14 Pricing Decisions Question 5, E14-22 (similar to) Part 1 of 5 HW Score: 9.48%, 1.14 of 12 points Points: 0 of 3 Save Jason Bartlett is the managing partner of a business that has just finished building a 60-room motel. Bartlett anticipates that he will rent these rooms for 20,000 nights next year (or 20,000 room-nights). All rooms are similar and will rent for the same price. Bartlett estimates the following operating costs for next year: (Click the icon to view the operating costs.) Read the requirements. (Click the icon to view additional information.) ... Requirement 1. What price should Bartlett 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. + + = Price per room-night per room-night Data table Variable operating costs Fixed costs $3 per room-night Salaries and wages $ 185,000 Maintenance of building and pool 48,000 107,000 Other operating and administration costs $ 340,000 Total fixed costs Print Done More info The capital invested in the motel is $1,200,000. The partnership's target return on investment is 20%. Bartlett 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