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 12,000 nights next year (or 12,000 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. Variable cost per room-night + Fixed cost per room-night Price per room-night per room-night + = Data table - More info bf a roor $ 3 per room-night ht The capital invested in the motel is $1,040,000. The partnership's target return on investment is 30%. 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. hight Variable operating costs Fixed costs Salaries and wages Maintenance of building and pool Other operating and administration costs $ 173,000 30,000 241,000 $ 444,000 Total fixed costs Print Done Print Done X 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 5%, the expected number of room-nights Basset could rent would increase by 5%. Should Basset reduce prices by 5%? Show your calculations. Print Done