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Hide or show questions Progress:6/20 items Calculator Pelican Roost Hotel has 100 rooms. For a normal...

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    Pelican Roost Hotel has 100 rooms. For a normal February, it averages 60% capacity. However, there are three 3-day events scheduled for February in which the hotel expects to be completely booked. Of the additional guests coming for the events, one-half will likely attach an extra day before or after the event to enjoy the beach and/or other local sights. You have determined that the housekeeping staff requires 30 minutes to clean each occupied room. The housekeeping staff is paid $14 per hour. The housekeeping labor cost is fully variable to the number of occupied rooms. Assuming it is not a leap year, the total housekeeping budget for February is

    a. $14,420

    b. $14,700

    c. $28,840

    d. $29,400

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Answer #1

d.$29,400.

3 * 3 event days will be (60% normal+ 40% extra occupancy) (3*3*100 rooms 100%) 900
3 extra days (60% normal occupancy + (40%*(1/2) days to enjoy beach) (3*100*80%) 240
16 normal days (60% normal occupancy) => (60%*100 rooms *16 days) 960
total room days 2,100

budgeted housekeeping expense = 2100 rooms * $14

=>$29,400.

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