Choice Hotels controller developed the following data for use in activity-based costing:
	Manufacturing overhead	Amount	Cost driver	Standard Guest Room	Junior Suite	Presidential Suite
	Depreciation	$3,200,000	Square feet	50,000	30,000	30,000
	Maintenance	$1,800,000	Direct labor hours	180,000	143,000	148,500
	Purchasing	$320,000	# of purchase orders	2,500	1,500	9,000
	Inspection	$850,000	# of inspections	1,000	850	3,500
	Indirect	$490,000	Units manufactured	150	110	25
	materials
	Supervision	$1,700,000	# of inspections	1,000	850	3.5
	Supplies	$190,000	Units manufactured	150	110	25
	Total	$8,550,000

8. What price should Choice Hotels charge for the Presidential Suite? 9. Assume that the Presidential Suite has the same profit margin as the Standard Guest Room. What should its selling price be? Show all calculations. 10. What should Choice Hotels do if the quantity of the Presidential Suite Guest Rooms sold at the new price falls to 10 per year? 11. What should Choice Hotels do if the price of the Presidential Suite cannot exceed $1,050,000? 12. At a selling price of $1,050,000 each, what is the breakeven unit volume for the Presidential Suite? 13. What are the lessons learned from this case?