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A hotel chain analyzes its costs for room maintenance, housekeeping, and utilities over four seasons. Season Rooms Occupied Maintenance Cost Cost per Room (Maintenance) Housekeeping
A hotel chain analyzes its costs for room maintenance, housekeeping, and utilities over four seasons.
Season | Rooms Occupied | Maintenance Cost | Cost per Room (Maintenance) | Housekeeping Cost | Cost per Room (Housekeeping) | Utilities Cost | Cost per Room (Utilities) |
---|---|---|---|---|---|---|---|
1 | 400 | $2,000 | $3,000 | $1,200 | |||
2 | 800 | $2,000 | $5,000 | $2,400 | |||
3 | 200 | $2,000 | $1,500 | $600 | |||
4 | 600 | $2,000 | $4,000 | $1,800 |
Required: a. Calculate the cost per room for each cost. b. Classify each cost as fixed, variable, or mixed. c. Discuss how understanding these cost behaviors can improve room pricing strategies. d. Evaluate the impact of these costs on the hotel’s operational budget. e. Propose measures to manage room maintenance, housekeeping, and utilities costs efficiently.
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