Question
Question 10 0 / 2 points 1. Janice Long is considering building a budget hotel that offers clean small rooms with bathrooms. She anticipates that
Question 10 0 / 2 points 1. Janice Long is considering building a budget hotel that offers clean small rooms with bathrooms. She anticipates that her 120 rooms will rent for 39,600 room-nights per year. The market price for equivalent rooms is $60 per night. Janice estimates that the capital cost will be $6,500,000 and she would like an annual return of 10%. Following are the estimated annual operating costs: Variable operating costs $ 21 per room night Fixed costs: Salaries and wages $ 420,000 Building maintenance 89,000 General administration 280,000 Total fixed costs $ 789,000
the answer is 12
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