CASE 1: SHOULD HOTELS OFFER ROOMS ON THE BEACH AT JUST $25 A NIGHT?

Branson, Missouri, is full of pretty much the same hotels. Summer rates are about $90 per night. During the winter one can find a room for only 25 dollars per night. Assume that the average fixed cost of a room per night including insurance, taxes and depreciation is $45. The average guest-related cost per room per night, including cleaning services and sheets is $12. Do you think these hotels would be better off if they didn't rent the rooms at $25 in the off-season and close until the summer? Argument your answers.