room-nights). All rooms are similar and will rent for the same pece. Bcowh estimates the following operaing cosis for next year (Click the icco to view the operoting costs) C (Cick tho icon to view additional information) Read the requirements Requirement 1. What price should Brown charge for a room-nighe? What is the makup as a percentage of the full cost of a toom-night? Begin by selecting the formula, then enter the amounts and solve for the room price per night. What is the markup as a perceneage the ful cost of a room-nighr? (Emer the markup as a percentage, X\%) increase by 20%. Should Brown reduce peices by 15% ? Show your caloulatons: Begin by calculating the new contribution margh which wal help you make your decision. Select the formula fint, then enter the anounts to calculate the contribuoon margin, (Ricund the new prich per room to two decimal places. Round the contribution margin is the nearest dollar) Should Brown reduco prices by 15% ? Bocause the contribution margin at the reduced price is the original contribution marin at the seling price you calculathd in recurement 1, Arown reduce the prices of tine Data table Variable operating costs Fixed costs Salaries and wages Maintenance of building and pool Other operating and administration costs Total fixed costs Cancel \$4 per room-night $171,000 45,000 144,000 $360,000 Requirements 1. What price should Brown charge for a room-night? What is the markup as a percentage of the full cost of a room-night? 2. Brown'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 Brown could rent would increase by 20%. Should Brown reduce prices by 15% ? Show your calculations. room-nights). All rooms are similar and will rent for the same pece. Bcowh estimates the following operaing cosis for next year (Click the icco to view the operoting costs) C (Cick tho icon to view additional information) Read the requirements Requirement 1. What price should Brown charge for a room-nighe? What is the makup as a percentage of the full cost of a toom-night? Begin by selecting the formula, then enter the amounts and solve for the room price per night. What is the markup as a perceneage the ful cost of a room-nighr? (Emer the markup as a percentage, X\%) increase by 20%. Should Brown reduce peices by 15% ? Show your caloulatons: Begin by calculating the new contribution margh which wal help you make your decision. Select the formula fint, then enter the anounts to calculate the contribuoon margin, (Ricund the new prich per room to two decimal places. Round the contribution margin is the nearest dollar) Should Brown reduco prices by 15% ? Bocause the contribution margin at the reduced price is the original contribution marin at the seling price you calculathd in recurement 1, Arown reduce the prices of tine Data table Variable operating costs Fixed costs Salaries and wages Maintenance of building and pool Other operating and administration costs Total fixed costs Cancel \$4 per room-night $171,000 45,000 144,000 $360,000 Requirements 1. What price should Brown charge for a room-night? What is the markup as a percentage of the full cost of a room-night? 2. Brown'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 Brown could rent would increase by 20%. Should Brown reduce prices by 15% ? Show your calculations
