Case 12-3 Accept business at a special price If you are not familiar with The Priceline Group Inc. (PCLN), go to its Web site. Assume that an individual "names a price of $90 on Priceline.com for a room in Miami, Florida, on September 3. Assume that September 3 is a Saturday, with low expected room demand in Miami at a Marriott International, Inc. (MAR), hotel, so there is excess room capacity. The fully allocated cost per room per day is assumed from hotel records as follows: Housekeeping labor cost" S 30 Hotel depreciation expense 50 Cost of room supplies (soap, paper, etc) Laundry labor and material cost" Cost of desk staff Utility cost (mostly air conditioning Total cost per room per day "Both housekeeping and laundry staffinclude a part-time workers so that the world is variable to demand $109 Should Marriott accept the customer bid for a night in Miami on September 3 at a price of $90? Case 12-4 Cost-plus and target costing concepts