What would be an appropriate average room rate to obtain the required net income after tax? (7 points)

- # of rooms: 100

- expected occupancy rate: 70%

- Net income after tax required: $800,000

- Tax rate: 35%

- Total fixed charges: $125,000

- Total Variable costs: $2,600,000

- Lease income from gift shop: $100,000

- Telephone department income: $50,000