John Beck is the managing partner of a business that has just finished building a(n) 80-room motel. Beck anticipates that he will rent these rooms for 21,200 nights next year (or 21,200 room-nights). All rooms are similar and will rent for the same price. Beck estimates the following operating costs for next year (Click the icon to view the additional information.) (Click the icon to view the operating costs) Required 1. What price should Beck charge for a room-night? What is the markup as a percentage of the full cost of a room-night? 2. Beck'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 Beck could rent would increase by 5%. Should Beck reduce prices by 5%? Show your calculations. 4 SITE Requirement 1. What price should Beck charge for a room-night? What is the markup as a percentage of the full cost of a room-night? Begin by finding the price per room-night. Selecting the labels for the formula, and then enter the amounts to calculate the price per room-night (Round your answers to the nearest cent) Price per room-night per room-night Variable operating costs Fixed costs Salaries and wages $ Maintenance of building and pool Other operating and administration costs $ Total fixed costs Done Print $7.50 per room-night 198,000 57,000 154,000 409,000 59 Additional information The capital invested in the motel is $1,100,000. The partnership's target return on investment is 30%. Beck 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. Print Done X