#6

Kresge Lodging has an elite program for its card members. There are three levels, based on total nights stayed: Diamond (50 nights or more); Platinum ( 25 nights or more); and Base (fewer than 25 nights). In order to facilitate reservations and answer customer questions, Kresge Lodging provides access to speclal customer service representatives, who work exclusively with the designated level (Dlamond, and so on). Customer representatives recelve salarles plus bonuses of 5 percent of customer gross margin. The company provides varlous perquisites (free nights, upgrades, and so on) to Its members, with 75 percent of the cost of the perquisites used for the benefit of Diamond members, 20 percent for Platinum members, and 5 percent for Base members. The gross margin recelved by Kresge is the amount recelved from the participating hotels for a customer's stay. Required: a. What is the excess of gross margin over customer costs for each category of customer? b. Which customers are more profitable? Complete this question by entering your answers in the tabs below. What is the excess of gross margin over customer costs for each category of customer? Which customers are more profitable