John Taylor is the owner of a new 60-room motel. John predicts for the upcoming year,...

 

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John Taylor is the owner of a new 60-room motel. John predicts for the upcoming year, that he will be able to rent the room for 15,000 room nights. Operating costs for the new year are: • Variable operating costs, $7 per room night • Fixed costs -Salaries & wages, $164,000 • Fixed costs - Maintenance, $40,000 • Fixed costs - Administration, $141,000 The company has a desired ROI of 15% and has invested capital of $1,000,000. Required (keep all final answers to 2 decimal places) a. Calculate the cost per room night and the desired ROI per unit. b. Calculate the markup percentage using total cost per unit. C. Calculate the target selling price per room night. John Taylor is the owner of a new 60-room motel. John predicts for the upcoming year, that he will be able to rent the room for 15,000 room nights. Operating costs for the new year are: • Variable operating costs, $7 per room night • Fixed costs -Salaries & wages, $164,000 • Fixed costs - Maintenance, $40,000 • Fixed costs - Administration, $141,000 The company has a desired ROI of 15% and has invested capital of $1,000,000. Required (keep all final answers to 2 decimal places) a. Calculate the cost per room night and the desired ROI per unit. b. Calculate the markup percentage using total cost per unit. C. Calculate the target selling price per room night.

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Answer a cost per room night total fixed cost salaries and wages maint... View the full answer