The inn has the possibility of booking another group of 100 rooms for the nights of...
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The inn has the possibility of booking another group of 100 rooms for the nights of Tuesday, Wednesday, Thursday, and Friday of that week at a discounted rate of $60 per room. The inn's rack rate for transient guests is $80, and its marginal cost per room sold is $15. a. Assuming the new group is booked, calculate the additional net sales revenue (gross sales revenue less marginal costs) to the inn. b. What factors, other than net sales revenue, might you consider before committing to this new group sale? P6.12 The Inviting Inn has 500 available guest rooms. For a certain week next month, the anticipated transient demand for rooms is as follows: Monday Tuesday Wednesday Thursday Friday Saturday Sunday 200 200 200 200 100 50 50 The Inviting Inn also has committed the following number of rooms for group sales during the same week: Monday Tuesday 200 200 Wednesday 300 Thursday 300 Friday 100 Saturday 100 Sunday 100 The inn has the possibility of booking another group of 100 rooms for the nights of Tuesday, Wednesday, Thursday, and Friday of that week at a discounted rate of $60 per room. The inn's rack rate for transient guests is $80, and its marginal cost per room sold is $15. a. Assuming the new group is booked, calculate the additional net sales revenue (gross sales revenue less marginal costs) to the inn. b. What factors, other than net sales revenue, might you consider before committing to this new group sale? P6.12 The Inviting Inn has 500 available guest rooms. For a certain week next month, the anticipated transient demand for rooms is as follows: Monday Tuesday Wednesday Thursday Friday Saturday Sunday 200 200 200 200 100 50 50 The Inviting Inn also has committed the following number of rooms for group sales during the same week: Monday Tuesday 200 200 Wednesday 300 Thursday 300 Friday 100 Saturday 100 Sunday 100
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a Additional net sales revenue 100 rooms x 4 nights ... View the full answer
Related Book For
Matching Supply with Demand An Introduction to Operations Management
ISBN: 978-0073525204
3rd edition
Authors: Gerard Cachon, Christian Terwiesch
Posted Date:
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