a) A fellow MBA alum from Lynn University, who now works in Admission at Lynn University would like to give each MBA student a benefit, which is programmed into the Lynn University ID card. This benefit would allow the student one night each month, depending on availability, for a room at the Marriott Courtyard for $40. Normally the room rate is $100 and the full cost of a nights stay is $50. Discuss whether or not this would be feasible, i.e. Marriott is able to do this transaction without it being a donation.

(3 pts) b) Marriott currently buys its ice machines from a manufacturer in China. A representative from a company in Vietnam is offering to sell them for 20% less than cost from the manufacturer in China. Discuss the issues that you would consider in deciding whether or not to accept this offer.

(10 pts) c) The CEO wishes to develop an incentive plan for the hotel managers. Before this is put into place, the CEO wishes you to make sure that budgeting in the hotels is done correctly. He has asked you to submit a document discussing the key points that you have learned in MBA 640. Be as thorough as possible.

(2 pts) d) Marriott has only used absorption costing. The CEO has asked you to explain the merits of using variable costing under certain circumstances. (

2 pts) e) The CEO has asked you to explain how target costing/pricing would be used in Marriotts pricing policies.