target return on investment.

Requirements

What price should Basset charge for a room$-$night? What is the markup as a

percentage of the full cost of a room$-$night?

Basset'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

Basset could rent would increase by $20\%.$ Should Basset reduce prices by

$15\%?$ Show your calculations.