If you are not familiar with The Priceline Group Inc. (PCLN), go to its Web site. Assume that an individual "names a price" of $90 on Priceline.com for a room in Miami, Florida, on

September 3. Assume that September 3 is a Saturday, with low expected room demand in Miami at a Marriott International, Inc. (MAR), hotel, so there is excess room capacity. The fully allocated cost per room per day is assumed from hotel records as follows:

Housekeeping labor cost* ..............................$ 30

Hotel depreciation expense .............................. 50

Cost of room supplies (soap, paper, etc.) ............... 2

Laundry labor and material cost* ........................ 6

Cost of desk staff ..........................................8

Utility cost (mostly air conditioning) ....................4

Total cost per room per day ..........................$100

Both housekeeping and laundry staff include ma y part-time workers, so that the workload is variable to demand.

Should Marriott accept the customer bid for a night in Miami on September 3 at a price of $90?