next year (or 20,000 room-nights). All rooms are similar and will rent for the same...
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next year (or 20,000 room-nights). All rooms are similar and will rent for the same price. Barrett estimates the following operating costs for next year heca al invested in the motel is $1,100,000. The partnership's target retum on investment is 20%, Barrett expects demand for rooms to be uniform throughout the year. He plans to price the rooms at full cost plus a markup on full cost to earn the target return on investment. Re as a could rent would increase by 20%. Should Barrett reduce prices by 15%? Show your of the full cost of a room-night? or a Clear Al Type here to PrtScn F2
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