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Anulyre Ctysape Hotels Otyscape Hotels has 200 rooms available ina meior metropoltan oty Thee hotel is able o attract business customers during the weedays and

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Anulyre Ctysape Hotels Otyscape Hotels has 200 rooms available ina meior metropoltan oty Thee hotel is able o attract business customers during the weedays and leisure ctomers duning the weekend, Pewever, the lesure customers on werkends occupy fower rooms then do business customers on weekdays Thus, Cityscape plans to provide specal weekend pricing to attract additonal lere austomers A hotel room is priced at $180 per room nght The cost of a hotel room night includes the following Cost Per Room Night (at ormal occupancy) $23 Housekeeping service utities Amentes 55 Hotel deprecation Hotel staff (xcduing i 42 housekeeping) $130 Total The specal weekend price is proposed for $120 per room ght At this prce, is anticipated thet average oonpncy for the wedday Saurdy, aid Sondey) wl incee from 30% to 50% of avlale rooms a. what s the cntrbution marg for a room nght under the roma prngoly the hotel depenation and hoel sta (escg ousekeepno) e asmed fed for a ocspacy eve h. Determine the contribo margn for a room night under the proposed wekond pong C Prepare a differential analysis showing the differential income for an average weekend between the existing (Alternative 1) and discount (Alternative 2) price plan Differential Analysis Continue with Existing Plan (Alt. 1) or Execute the Discount Plan (Alt. 2) Differential Excute the Discount Plan Continue with Existing Plan (Alternative 1) (Altermative 2) (Altemative 2) Effects Revenus per weekend Vanable costs per weekend HOusekeeping service Uites Amenities Total variable cost per wekend Contribution margn per wekend d. Should management accept the proposed weekend pricing plan? 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 weekends occupy fewer rooms than do business customers on weekdays. Thus, Cityscape plans to provide special weekend pricing to attract additional lelsure customers. A hotel room is priced at $180 per room night. The cost of a hotel room night includes the following: Cost Per Room Night (at normal occupancy) Housekeeping service $23 Utilities 7 Amenities 3 Hotel depreciation 55 Hotel staff (excluding 42 housekeeping) Total $130 The special weekend price is proposed for $120 per room night. At this price, it is anticipated that average occupancy for the weakend (Friday, Saturday, and Sunday) will increase from 30 % to 50 % of available rooms. a. What is the contribution margin for a room night under the normal pricing if only the hotel depreciation and hotel staff (excluding housekeeping) are assumed fixed for all occupancy levels? b. Determine the contribution marain for a room niaht under the oroposed weekend.orna. a. What is the contribution margin for a room night under the normal pricing if only the hotel depreciation and hotel staff (excluding housekeeping) are assumed fixed for all occupancy levels? b. 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 existing (Alternative 1) and discount (Alternative 2) price plan. Differential Analysis Continue with Existing Plan (Alt. 1) or Execute the Discount Plan (Alt. 2) Execute the Discount Plan Differential Continue with Existing Plan (Alternative 1) (Alternative 2) (Alternative 2) Effects Revenues per weekend Variable costs per weekend: Housekeeping service Utlities Amenities Total variable cost per weekend 0000 0000 0000 c. Prepare a differential analysis showing the differential income for an average weekend between the existing (Alternative 1) and discount (Alternative 2) price plan. Differential Analysis Continue with Existing Plan (Alt. 1) or Execute the Discount Plan (Alt. 2) Differential Effects Execute the Discount Plan (Alternative 2) (Alternative 2) Continue with Existing Plan (Alternative 1) Revenues per weekend Variable costs per weekend: Housekeeping service Utilitles Amenities Total variable cost per weekend Contribution margin per weekend d. Should management accept the proposed weekend pricing plan? 00000

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