Janice Long is considering building a budget hotel that offers clean small rooms with bathrooms. She anticipates that her 120 rooms will rent for 39,600 room-nights per year. The market price for equivalent rooms is $60 per night. Janice estimates that the capital cost will be $6,500,000 and she would like an annual return of 10%. Following are the estimated annual operating costs: Variable operating costs $ 21 per room night Fixed costs: Salaries and wages $ 420,000 Building maintenance 89,000 General administration 280,000 Total fixed costs $ 789,000 Required: a. What is the full cost per room-night? b. Can Janice meet the targeted return on investment based on the estimated costs and revenue? Show your calculations. c. A tour operator has offered $30 per night for 20 rooms during a time of the year that there is likely to be at least that many rooms vacant. Should Janice accept this offer? Show your calculations.