The exclusive Swink Golf Driving Range has had a standard price of $15 per hour. The facility
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The exclusive Swink Golf Driving Range has had a standard price of $15 per hour. The facility has 36 golfing stations, with average usage of 50%, 10 hours a day, 7 days a week. Morgan Swink, the owner, would like to enhance revenue. He proposes new pricing at $10 per hour on weekdays and $20 per hour on weekends. He estimates that weekday usage will increase to 60% and weekend usage will remain at 50%, even with the price increase. Variable cost is a consistent $3 per hour. Which strategy is better?
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Operations Management Sustainability And Supply Chain Management
ISBN: 9780135173626
13th Edition
Authors: Jay Heizer, Barry Render, Chuck Munson
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