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 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 opoerated departments is projected to be $400,000 annually. Calculate the rate required assuming a 65% annual occupancy rate: