John Beckett Beckett is the managing partner of a business that has just finished building aâ 60-room motel. Beckett Beckett anticipates that he will rent these rooms for 12 comma 500 12,500 nights next yearâ (or 12 comma 500 12,500 âroom-nights). All rooms are similar and will rent for the same price. Beckett Beckett estimates the following operating costs for nextâ year: Variable operating costs $3 per room night
Fixed costs
Salaries and wages $182,000
Maintenance of building and pool 50,000
Other operating and administration costs 153,000
Total fixed costs 385,000

Required:
What price should Beckett charge for a room-night? What is the markup as a percentage of the full cost of a room-night?