YY Corp. runs a hotel with 100 rooms all of the similar standard. Hotel fixed costs are 10K per day and the variable cost of allowing occupants into one room are $10 per room per day. The usual room rate is $200 per day. 1. What is the minimum price that the hotel can charge for a room for one day? 2. What price will the hotel need per room to cover costs if occupancy is typically 80%? 3. If the hotel receives a request for 80 rooms for one week in a month where occupancy (at $200 per day) is usually only 50%, what minimum price can it ask per room for 80 rooms? 4. If the average occupancy over a year is 80%, what is the minimum average price per room to cover fixed and variable costs over the year? 5. If you were hotel manager, what would be your thinking when it comes to setting room rates (explain in just 3-4 lines)?