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 12,500 nights next year (or 12,500 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 ata table More info Variable operating costs $ 4 per room-night 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. Fixed costs $ 171,000 Salaries and wages Maintenance of building and pool 35,000 244,000 Other operating and administration costs Print Done $ 450,000 Total fixed costs Requirements 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? 2. Basset'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 Basset could rent would increase by 5%. Should Basset reduce prices by 10%? Show your calculations