Chuck Stout is the RM for the Holiday Inn Express. His 220-room property normally sells 85 percent of its rooms on Tuesday nights at an ADR of $141.50. All variable costs related to selling his rooms are $55.00 per room. The DOSM at his Holiday Inn Express is proposing to place a bid to sell 125 rooms for a Tuesday night next month at a rate of $109.00 per room. Chuck believes that if the hotel wins this group rooms bid, the transient room sales for that day will ensure a sell-out at the rate of $141.50.

What would be the total amount of after-variable costs rooms revenue the hotel will achieve if it wins the group rooms contract?

$14,967.50

$13,442.50

$16,175.50

$18,747.50

What would be the after-variable rooms income if the hotel does not win the contract?

$16,175.50

$14,967.50

$18,747.50

$14,547.00