The EconoLodge Supreme in White Haven, PA, is a 200-room hotel that was built 20 years ago

for a total project cost of $12,000,000. The market value of the facility is now estimated at

$40,000,000, and the general manager estimates that the level of guest service is worth at least

$5,000 per room per year. A close competitor of the hotel charges $55 per night per room.

According to the $1 per $1,000 approach to pricing rooms, what should the price of a room

night be at the EconoLodge Supreme?

$55

$60

$200

The answer cannot be determined from the information given.