Requirement $2$ Variable operating costs $ $3$ per room$-$night

Fixed costs

Salaries and wages $$165,000$

Maintenance of building and pool $52,000$

Other operating and administraton costs $123,000$

Total fixed costs $$340,000-$ The capital invested in the motel is $1,200,000.$ The$$ partnership's target return on investment is $20\%.$ expects demand for rooms to be uniform throughout the year. He plans to price the rooms at full cost plus$\text{'}$s market research indicates that if the price of a$$ room$-$night determined in requirement $1$ is reduced by $15\%,$ the expected number of$$ room$-$nights could rent would increase by $10\%.$ Should reduce prices by $15\%?$ Show your calculations. a markup on full cost to earn the target return on investment. $---$