The answer I got for this problem was $40.09. According to the submitted exam the correct answer was $55.08. I was wondering if someone can show me how to get to the second answer.

Use the following information to calculate a Hubbart Room Rate Formula:

A given hotel has 225 rooms.

Operating expenses run about $1,110,000 annually.

Depreciation is scheduled at $445,000 per year.

Additional costs (taxes, insurance, etc.) are expected to be about $135,000 for the year.

The owners require a reasonable return of $850,000 per year for their investment.

Net loss from other operating departments is projected to be $400,000 annually.

Calculate the rate required assuming a 65% annual occupancy rate: