Question

A 400-room hotel can rent every one of its rooms at $100 per room. For each $2 increase in rent,

4 fewer rooms are rented. Each rented room costs the hotel $12 to service per day. How much should the hotel charge for each room to maximize its daily profit? What is the maximum daily profit?

Answer #1

600-room hotel can rent every one of its rooms at $80 per
room. For each $1 increase in rent, 6 fewer rooms are rented.
Each rented room costs the hotel $10 to service per day. How much
should the hotel charge for each room to maximize its daily
profit? What is the maximum daily profit?

A hotel has 260 units. All rooms are occupied when the hotel
charges $80 per day for a room. For every increase of x dollars in
the daily room rate, there are x rooms vacant. Each occupied room
costs $28 per day to service and maintain. What should the hotel
charge per day in order to maximize daily profit?

1. A 600-room hotel in Las Vegas is filled to capacity every
night at a price of $106 per room. For each $1 increase in the room
price, 3 fewer rooms are rented. If each rented room costs $10 to
service per day, how much should the management charge for each
room to maximize the total profit?
2. Find the absolute maximum and absolute minimum values (if
they exist) of f(x) = ln x/ x on the interval (0, ∞)....

Suppose a hotel has annual fixed costs applicable to its rooms
of $2,000,000 for its 300-room hotel. Average daily room rents are
$50 per room and average variable costs are $10 for each room
rented. It operates 365 days per year. If the hotel is completely
full throughout the year, what is the operating income for one
year?
a. 1,280,000
b 2,380,000
c. 4,380,000
d. 3,180,000

A resort can rent 100 canoes a day when they charge $30 per
canoe for a day’s rental. But each $2 increase in rental fees
results in 4 fewer rentals. How many canoes should they rent to
maximize revenue?

1.Assume you are the
manager of a hotel that has 381 rooms. You are trying to determine
the price that will maximize the revenue.
You notice that as
long as the hotel rate is $69 or lower, the hotel is fully
booked.
However if you raise
the price above $69 you notice that for each $1 increase in price,
three fewer rooms will be booked.
Assuming that we call
x the price increase, find a function that describes the revenue...

8. Application: Elasticity and hotel rooms The following graph
input tool shows the daily demand for hotel rooms at the Triple
Sevens Hotel and Casino in Las Vegas, Nevada. To help the hotel
management better understand the market, an economist identified
three primary factors that affect the demand for rooms each night.
These demand factors, along with the values corresponding to the
initial demand curve, are shown in the following table and
alongside the graph input tool. Demand Factor Initial...

9. Application: Elasticity and hotel rooms The following graph
input tool shows the daily demand for hotel rooms at the Big Winner
Hotel and Casino in Las Vegas, Nevada. To help the hotel management
better understand the market, an economist identified three primary
factors that affect the demand for rooms each night. These demand
factors, along with the values corresponding to the initial demand
curve, are shown in the following table and alongside the graph
input tool. Demand Factor Initial...

The 100-room limited-service Pepper Inn has an ADR of $75 and
variable costs per room sold of $15. Assume there is no other sales
activity. Its monthly fixed costs total $120,000.
How many rooms must be sold to break even? (please round up the
number). (1 points)
What day of the month does it break even if it averages a paid
occupancy percentage of 85%? Assume all rooms are available for
sale each day. (2 points)
If variable costs are...

12. 40 pieces of certain goods are sold every day in the shop.
Profit per one piece of this product is 240 USD.
a) Expert A claims that lowering the price by x USD will increase
daily sales of this product by x pieces. How much should I lower
the price to make the profit? How much will the profit increase
then?
b) Expert B claims that increasing the price by USD (20 * x) will
decrease the daily sale...

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