1. Using equivalent occupancy formula, determine the equivalent room occupancy percent required to maintain profitability in a hotel with a current occupancy of 70%, rack rate of $110, and marginal cost of $25 if the hotel were to offer a 12% discount.

2. Use the rule of thumb method to find out what the average room rate should be for a 320-room hotel, costing $26 million. Once you find the average room rate, assume that an occupancy of 75% is expected and double occupancy rate is 42% with a price difference between singles and doubles of $12 (the hotel has 160 double rooms and 160 single rooms), find the rate for double rooms and the rate for single rooms.

3. An investment of $800,000 was necessary to open a 200-seat restaurant. Half of the required investment was financed with a bank loan carrying an annual interest % of 15%. Tax rate is equal to 35%. Operating expenses are $700,000 per year. Cost of food sold % is 37%. Seat turnover is 3 times per day. The restaurant is open 365 days a year. Owners require a 15% return on investment. Find their required average meal price.