Question
4. Revenue Management (7 points) a. (1 points) A hotel has 2 rooms left to sell for November 17th through 21th. The variable cost of
4. Revenue Management (7 points) a. (1 points) A hotel has 2 rooms left to sell for November 17th through 21th. The variable cost of selling a room for one night is $24. Customers A, B, C and D wants to check in at the hotel on November 17th and stay for 2, 3, 3, and 3 nights respectively and is willing to pay $210, $140, $100 and $90 per night respectively. Customer A and B plans to use the hotels breakfast buffet every morning of their stay, but none of the other customers plan to have their breakfast at the hotel. The buffet costs $17 per person and the variable cost for the buffet per person is $6. Which customer(s) would you accept? Explain why.
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