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Dick Loudon is the RM of the Stafford Inn. His 220 room property normally sells 85% of its rooms on Tuesday nights at an ADR

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Dick Loudon is the RM of the Stafford Inn. His 220 room property normally sells 85% 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 Director of Sales and Marketing is proposing to place a bid to sell 125 rooms for a Tuesday night next month at a rate of $109.00 per room. Dick believes that if the hotel wins the group rooms bid, the transient room sales for that day will ensure a sell-out with these remaining rooms selling at an ADR of $141.50. a) What would the inn's total revenue for that night be if it makes the group sale? b) What would the inn's total revenue for that night be if it does not make the group sale? c) What would the total net revenue after variable costs be if the inn makes the group sale? d) What would the total net revenue after variable costs be if the inn does not make the group sale? e) What other factors should Dick and the DOSM take into account before deciding if they should bid on this piece of business

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