Conversion Funnel Exercise

Here is a conversion funnel from a month of traffic on the website of a major hotel chain (Marriott or Hyatt, for example)

Rates & availability	2347892
Review Itinerary	367495
Guest Info	103471
Confirmation	72498
Revenue	$ 23,464,220
Room Nights	143285

(8) a) You believe that if you offered a 10% discount on all bookings, the conversion rate would increase to 3.5%. Would this increase or decrease revenue? Explain.

b) Would this be a profitable action if the gross margin on bookings (before the 10% discount) is 50%? Explain.