Vanessa Xu is the general manager for The Grand Hotel in Hong Kong. Vanessa is pondering about

Vanessa Xu is the general manager for €œThe Grand€ Hotel in Hong Kong. Vanessa is pondering about how to respond to a request from a major client regarding long-stay rates. A long stay would be a single visit of a week or more.
Vanessa has assembled the following data to help with her decision.

Required:
a. Compute the total cost of a long stay (9 days average) and a short stay (2 days) guest.
b. What advice do you give Vanessa Xu re the price discount to offer the client for long-stayguests?

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Regular rooe HK$1,800 per day Variable cost At current rates USD-HK$7.8. HKS150 per day leaning, supplies, water utilities Room maintenance HKS300 every three days The hotel changes sheets every three days as a matter of course. However, the hotel will change sheets everyday if asked. Most people do not request new sheets every day Of course, the hotel changes sheets when a guest departs. Includes cost of welcome HK$150 per guest; HK$250 for long-stay guests HKS100 per day for first 3 days. HK$50 per day afterwards. Check in and Check out basket cost: HK$150) for long-stay guests Concierge service Usage declines as guests become more independent and less reliant on the hotel's ervices Guest spending on HKS450 per day The hotel's variable cost is 40% of billed amounts The hotel's variable cost is 40% of billed amount. meals, etc Guest spending on miscellaneous services HKS400 per short term guest; HK$2,500 for long-stay guests.