Q1. Answer this question based on the following information.

The Pullman Hotel has 300 rooms. The average transient rate in April is $145.

The variable room cost is $15 (per room).

The Pullman Hotel is also paying a royalty fee of 4% and a marketing fee of 3% of room revenue.

The business student alumni association at WSU plans a reunion.

The group requests single rooms for $70 per room night, meals (breakfast $10, lunch $24, dinner $32), and other services for a 3-day (2 night) event from April 10 to April 12.

The following is the groups request:

Date	Rooms	Breakfast	Lunch	Dinner	Meeting room
April 10	85	85	0	85	-----
April 11	80	80	0	0	$400
April 12	75	75	50	0	$400
Total	240	240	50	85	$800

The forecasted occupancy of the hotel for the days in question is as follows:

April 10	April 11	April 12
255	265	210

This means that the hotel will have to displace some of the forecasted transient demand.

The hotels capture rate (% of transient guests purchasing a meal) and other relevant data per meal period for transient guests in April are as follows:

Meal	Price	Food cost %	Transient capture %
Breakfast	$12	30%	70%
Lunch	$28	34%	20%
Dinner	$40	32%	40%

The group meals have the same food costs per item as the transients but are sold at discounted price:

Meal	Price	Food cost
Breakfast	$10	$3.60
Lunch	$24	$9.52
Dinner	$32	$12.80

Beverage costs and prices are the same for group guests and transients.

The average beverage price is $6.00 and the average beverage cost is 29%.

The organizer believes that 70% of the group members will purchase one beverage per day.

The beverage capture rate of transient guests is 40%.

What is the Profit difference of Food Department between group & transient guests? (Recommend understand full displacement analysis)