Please show me the solution, thanks. Jerry Dickson has been approached by the franchise sales representative of a majorhotel chain. The sales representative is trying to interest Jerry in building one...

Please show me the solution, thanks. Jerry Dickson has been approached by the franchise sales representative of a majorhotel chain. The sales representative is trying to interest Jerry in building one of thefranchise brand's full-service hotels. The hotel will cost $8,000,000 to build and willconsist of 200 rooms. Mortgage payments on the hotel will be $750,000 per year andother nonoperating expenses will be $250,000 per year.At an assumed 60% occupancy level, the rooms manager has calculated thatpayroll and related expenses and other expenses for rooms is $45 per room, andundistributed operating expenses related to operating the hotel are $1,000,000.The hotel is projected to make an operating income of $125,000 per year from theF&B department and $50,000 from all other non-rooms departments.Jerry is interested in the project if he can achieve a 12% return on the investment,assuming a 40% tax rate. Question: Utilizing the Hubbart room rate formula, what is the room rate required for Jerry tomeet his 12% investment target?