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Analyze Cityscape Hotels > Cityscape Hotels has 200 rooms available in a major metropolitan city. The hotel is able to attract business customers during the

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Analyze Cityscape Hotels > Cityscape Hotels has 200 rooms available in a major metropolitan city. The hotel is able to attract business customers during the weekdays and leisure customers during the weekend. However, the leisure customers on weekendt occupy fewer rooms than do business customers on weekdays. Thus, Cityscape plans to provide special weekend pricing to attract additional belaure customers. A note room is priced at $180 per room night. The cost of a hotel room night includes the fonowing: Cost Per Room Night (at normal occupancy) Housekeeping service Utilities Amenities 3 Hotel depreciation 55 Hotels (exduding housekeeping Total $130 The speciel weekend price is proposed for 120 par room night. At this prion, it is amicipated that average occupancy for the weekend triday Saturday, wrid Sundev/wa Increase from 3 to 50% of available room What is the contribution malointer a room night under the normal pricing only the hotel depremin and hotel staff (excluding housekeeping) are sumed feed for an panty levels Determine the contribution margin for a room night under the propose westend pricing cu ferential role shows the offerential income for an average weekend between the coming (Alternative 17 and acount (Alternativa) Differential Analysis Continue with iting Plan (AR 1) or Execute the Discount Plan (AIC) Continue with Execute the Differentia Que My Work Previous housekeeping Tota 5130 The special weekend price is proposed for $120 per room night at this price, it has anticipated that average occupancy for the weekend (Friday, Saturday, and sunday) Increase from 30% to 50% of available room. a. What is the contribution margin for a room night under the normal pricing it only the hotel depreciation and hotel staff (exeluding housekeeping) are soumed fixed occupancy levels 1. Determine the contribution margin for a room night under the proposed weekend pricing C. Prepare a differential analysis showing the differential income for an average weekend between the axuting (Alterative 1) and discount (Alternative 2) price plan Differential Analysis Continue with Existing Plan (Alt. 1) or Execute the Discount Plan (Alt. 2) Continue with Execute the Differential Existing Plan Discount Plan Effects (Alternative 1) (Alternative 2) (Alternative 2) Ravenues per weekend Variable costs per weekend: I Housekeeping service Utilities Amenities 100 Total vanable cost per weekend Contribution margin per weekend d. Should management accept the proposed weekend pricing plan

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