8.25 The Sheraton Corporation operates many hotels throughout the suppose on it's Los Angeles hotels is facing difficult times because of the opening of several new comper of hotels. To accommodate its flight personnel, United Airlines has offered sheraton a contract the coming year that provides a rate of P50 per night per room for a minimum of 50 rooms of 365 nights. This contract would assure Sheraton of selling 50 rooms of space nightly, events some of the rooms are vacant on some nights. The Sheraton manager has mixed feelings about the contract. i several peak night during the year, the hotel could sell the same space for P100 per room. Required: 1. Suppose the contract is signed. What is the opportunity cost of the 50 rooms on October 20, the night of a big convention of retailers when every midtown hotel room is occupied? 2. What is the opportunity cost on December 28, when only 10 of these rooms would ho expected to be rented at an average rate of P80? 3. If the year-round rate per room averaged P90, what percentage of occupancy of the 50 rooms in question would have to be rented to make Sheraton indifferent about accepting the offer? 8.26 Assume the same facts as in the problem 4.25. However, also assume that the variable costs per room per day are P10. REQUIRED: 1. Suppose the best estimate is a 53% general occupancy rate for the 50 rooms at an average P90 room rate for the next year. Should Sheraton accept the contract? 2. What percentage of occupancy of the 50 rooms in question would make Sheraton indifferent about accepting the offer