Jason Rents Rooms in His Hotel for an Average of $100

Multiple Choice

Jason rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20. His fixed costs are $100,000 and his target profit is $20,000. For Jason, to earn his target profit, he will need to rent out ________ rooms.

A) 100
B) 1,500
C) 20,000
D) 1,000
E) It cannot be determined from the information provided.