Question: please help me for part A. hw due soon. Accepting Business at a Special Price for a Service Company Cityscape Hotels has 200 roorms available
Accepting Business at a Special Price for a Service Company Cityscape Hotels has 200 roorms available in a major metropolitan city. The hotel is able to attract business customers during the weekdays, and leisure customers during the weekend. However, the leisure customers on weekends occupy fewer rooms than do business customers on weekdays. Thus, Cityscape plans to provwide special weekend pricing to attract additional letsure customers. A hotel room is priced at $180 per room night. The cost of a hotel room night includes the following Cost Per Room Night (at normal occupancy) Housekeeping service s 23 Utilities Amenities Hotel depreciation Hotel staff (excluding housekeeping) 42 130 Total a. What is the contribution margin for a room night if only the hotel depreciation and hotel staff are assumed fixed for all occupancy levels? What should be considered in setting a discount price for the weekends? b. The discount price should be set greaterthan the variable costs per room night so thst the resulting contribution margn contrbutes to fiwed costs and proftabialry
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