IK . Due lh 19 hours The Overton Hotel in Lubbock has the following Characteristics Find...

Question

Question

IK . Due lh 19 hours The Overton Hotel in Lubbock has the following Characteristics Find the Contribution to Profit & Overhea

Answer 1

Answer #1

The contribution will be the Demand * (Price - Variable cost) for both types of rooms.

So,

Contribution = D_B*(P_B - V) + D_C*(P_C - V) = 400*(150 - 30) + 900*(90 - 30) = 102,000

Answer 2

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