The contribution will be the Demand * (Price - Variable cost) for both types of rooms.
So,
Contribution = DB*(PB - V) + DC*(PC - V) = 400*(150 - 30) + 900*(90 - 30) = 102,000
IK . Due lh 19 hours The Overton Hotel in Lubbock has the following Characteristics Find...
HomeSuites is a chain of all-suite, extended-stay hotel properties. The chain has 18 properties with an average of 220 rooms in each property. In year 1, the occupancy rate (the number of rooms filled divided by the number of rooms available) was 70 percent, based on a 365-day year. The average room rate was $170 for a night. The basic unit of operation is the “night,” which is one room occupied for one night. The operating income for year 1...
My question is about the case study “ Comparing Apples and Oranges: which group yuelds the best profit?” 1) Using the Excel apreadsheet attached to complete the rooms sold and revenue projections based on the above case study. Case Study: "Comparing Apples and Oranges: Which Group Yields the Best Profit?" The Diamond Peak Hotel, one of 45 hotels in the Host Marriott management company, was bustling with business this Thursday afternoon as the hour of the daily revenue meeting drew...