Excess Capacity

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.

$$ room$-$nights

b$.$ Calculate the cost per room night of cleaning and maintenance.

Note: Round answer to the nearest cent.

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)$

d$.$ Should the division or customers be accountable for the cost of excess capacity?

The cost of excess capacity should be hat$(v)$ allocated to customers who visit during peak season.