Q1. Please make full displacement analysis based the following information:

The Winsor has 380 rooms. The average transient rate in March is $156. The variable room cost is $19 (per room).

The Windsor is also paying a management fee of 4% and an advertising fee of 3.5% of room revenue.

A local universitys business student alumni association plans a reunion. The group requests single rooms for $80 per room night, three meals with group promotion prices are shown: breakfast $10, lunch $26, dinner $35, and other services for a 3-day event between March 6 8.

The following is the groups request:

Date	Rooms	Breakfast	Lunch	Dinner	Meeting room
03/06	90	90	0	90	-----
03/07	85	80	0	0	$400
03/08	75	73	55	75	$300
Total	250	243	55	165	$700

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

03/06	03/07	03/08
323	340	320

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

Meal	Price	Food cost %	Transient capture %
Breakfast	$15	33%	69%
Lunch	$35	37%	23%
Dinner	$50	30%	45%

The group meals have the same food costs per item as the transients.

Beverage costs and prices are the same for group guests and transients. The average beverage price is $8.00 and the average beverage cost is 27%. The organizer believes that 65% of the group members will purchase one beverage per day. The beverage capture rate of transient guests is 45%.