Jason Basset is the managing partner of a business that has just finished building a 60-room motel. Basset 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. Basset estimates the following operating costs for next year: (Click the icon to view the operating costs.) (Click the icon to view additional information.) Read the requirements. 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. Price per room-night + = per room-night What is the markup as a percentage of the full cost of a room-night? (Enter the markup as a percentage, X%.) Markup as a % of full cost % markup Requirement 2. Basset's market research indicates that if the price of a room-night determined in Requirement 1 is reduced by 15%, the expected number of room-nights Basset could rent would increase by 10%. Should Basset reduce prices by 15%? Show your calculations. Begin by calculating the new contribution margin which will help you make your decision. Select the formula first, then enter the amounts to calculate the contribution margin. (Round the new price per room to two decimal places. Round the contribution margin to the nearest dollar.) Should Basset reduce prices by 15%? New contribution margin 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. 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-ni More info Price per room-night per room-night Requirement 2. Basset's market research indicates that if the p Begin by calculating the new contribution margin which will help nearest dollar.) The capital invested in the motel is $1,200,000. The partnership's target return on investment is 20%. 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. hts Basset could rent would increase by 10%. Should Basset reduce prices by 15%? Show your calculations argin. (Round the new price per room to two decimal places. Round the contribution margin to the Should Basset reduce prices by 15%? Because the contribution margin at the reduced price is Print Done reduce the price of the rooms. 3 Data table Begin by selecting the formula, then enter the amounts and solve for the room price per night. Variable operating costs Fixed costs Salaries and wages Maintenance of building and pool Other operating and administration costs Total fixed costs Print Done x oom-ni More info $3 per room-night if the p ill help $ 173,000 50,000 117,000 $ 340,000 = Price per room-night per room-night - X The capital invested in the motel is $1,200,000. The partnership's target return on investment is 20%. 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. hts arg Print Done