Type I rooms do not have high$-$speed Internet access and are not available for the Business rental class.

Round Tree's management makes a forecast of the demand by rental class for each night in the future. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. The demand forecast for a particular night is $140$ rentals in the Super Saver class, $60$ rentals in the Deluxe class, and $50$ rentals in the Business class. Round Tree has $100$ Type I rooms and $120$ Type II rooms.

$($a$)$

Use linear programming to determine how many reservations to accept in each rental class and how the reservations should be allocated to room types. Is the demand by any rental class not satisfied? Explain.

If demand materializes as forecast, there will be

$50$

Changed: Your submitted answer was incorrect. Your current answer has not been submitted.

rooms not reserved in the

Business

Changed: Your submitted answer was incorrect. Your current answer has not been submitted.

class.

$($b$)$

How many reservations can be accommodated in each rental class?

Super Saver

$110$

Correct: Your answer is correct.

Deluxe

$60$

Correct: Your answer is correct.

Business

$50$

Correct: Your answer is correct.

$($c$)$

Management is considering offering a free breakfast to anyone upgrading from a Super Saver reservation to Deluxe class. If the cost of the breakfast to Round Tree is $$5,$ should this incentive be offered?

Increasing demand for Deluxe class accommodations will

increase

Changed: Your submitted answer was incorrect. Your current answer has not been submitted.

profit. Since the predicted change in profit is

greater than

Correct: Your answer is correct.

the added cost of the breakfast, the incentive

should

Correct: Your answer is correct.

be offered.