Question $2.(15$ pts$)$

Mary A$.$ is the RM for the Hyatt Hotel, in Columbus, OH$.$ In September, her $400-$room property

normally sells $80\%$ of its rooms on Monday nights$]$at an ADR of $$161\mathrm{.}00.$ Mark, the DOSM at the

hotel is proposing to place a group room sale bid to sell $180$ rooms for a Monday night next

month at a rate of $$99\mathrm{.}00$ per room. Mark believes that if the hotel wins this group rooms bid,

the transient room sales for that day will ensure a sell$-$out of rest rooms at the rate of $$161\mathrm{.}00.$

All variable costs related to selling her rooms are $$37\mathrm{.}00$ per room. Between two options with

and without the group sale, they are assessing Total revenue and Net revenue $($Net revenue is

Total revenue minus Total variable costs @ $$\frac{37\mathrm{.}00}{?}$ room$).$ Answer questions below:

What would be the total amount of revenue the hotel will achieve if:

It makes the group sale?

It does not make the group sale?

What would be the total a mount of after$-$variable costs rooms' revenue the hotel will

achieve if it wins the group rooms contract?

What would be the after$-$variable cost rooms' income if the hotel does not win the

contract?

What options between with and without group sale should Jane choose?

What additional factors might Mary and Mark take into account before

determining whether to bid on this piece of group rooms business?