Question: Problem 2 At the Doster Hotel the rack rate is $80. The marginal cost per room is $15 and the paid occupancy percentage is 80%.

Problem 2 At the Doster Hotel the rack rate is $80.

Problem 2 At the Doster Hotel the rack rate is $80. The marginal cost per room is $15 and the paid occupancy percentage is 80%. Assume there are 100 guestrooms. Assume rooms are sold at the rack rate. Daily room revenue: Daily Room Contribution Margin (Rooms x OGG % x Rack Rate)-(Rooms x OCC% x Marginal Cost) Answer the following: a) What is the daily room revenue? b) What is the daily contribution margin

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