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Jason Beckett is the managing partner of a business that has just finished building a 60-room motel. Beckett anticipates that he will rent these rooms
Jason Beckett is the managing partner of a business that has just finished building a 60-room motel. Beckett anticipates that he will rent these rooms for 17,500 nights next year (or 17,500 room-nights). All rooms are similar and will rent for the same price. Beckett estimates the following operating costs for next year: EE (Click the icon to view the operating costs. )(Click the icon to view additional information.) Read the requirements. Requirement 1. What price should Beckett 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 Variable operating costs $ 3 per room-night Fixed costs Salaries and wages Maintenance of building and pool Other operating and administration costs 182,000 50,000 153,000 385,000 Total fixed costs
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