Assume Marriott International just opened a new hotel in Bethesda, MD. The hotel has 588 rooms,...

 

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Assume Marriott International just opened a new hotel in Bethesda, MD. The hotel has 588 rooms, or 214,620 room-nights per year (equal to 365 x 588). The hotel was built with the aim that it would be 90% occupied during the spring and summer months, and it would be at a much lower capacity of 50% during the remaining portion of the year. The cost of the building cleaning and maintenance is estimated to be $67,200,000 per year. a. Calculate the practical capacity of the hotel. Note: Show all decimal places in your answer. 300,468 x room-nights b. Calculate the cost per room night of cleaning and maintenance. Note: Round answer to the nearest cent. $313.11 c. Calculate the cost of excess capacity for the year. Note: Use rounded answer from part b to calculate the answer to this question. Note: Round final answer to the nearest dollar. $ 26,870,905 x d. Should the division or customers be accountable for the cost of excess capacity? The cost of excess capacity should be allocated to customers who visit during peak season. The hotel's size was determined based on peak season demand. Consequently, excess capacity is a cost of meeting demand during the high-demand season. Assume Marriott International just opened a new hotel in Bethesda, MD. The hotel has 588 rooms, or 214,620 room-nights per year (equal to 365 x 588). The hotel was built with the aim that it would be 90% occupied during the spring and summer months, and it would be at a much lower capacity of 50% during the remaining portion of the year. The cost of the building cleaning and maintenance is estimated to be $67,200,000 per year. a. Calculate the practical capacity of the hotel. Note: Show all decimal places in your answer. 300,468 x room-nights b. Calculate the cost per room night of cleaning and maintenance. Note: Round answer to the nearest cent. $313.11 c. Calculate the cost of excess capacity for the year. Note: Use rounded answer from part b to calculate the answer to this question. Note: Round final answer to the nearest dollar. $ 26,870,905 x d. Should the division or customers be accountable for the cost of excess capacity? The cost of excess capacity should be allocated to customers who visit during peak season. The hotel's size was determined based on peak season demand. Consequently, excess capacity is a cost of meeting demand during the high-demand season.