Question
EX 9-2: B. T. Marvel, the owner/manager of the 100-room Finney Motel, forecasts room revenues based on the number of room sales and expected ADR.
EX 9-2: B. T. Marvel, the owner/manager of the 100-room Finney Motel, forecasts room revenues based on the number of room sales and expected ADR. The monthly room sales (in units) for July September 2013 were as follows: July: 2,480 August: 2,542 September: 2,325 B. T. believes the room sales for each month will increase by two occupancy points. In addition, B. T. expects the ADR for July-September will be $75, $78, and $72, respectively. Required: 1. Forecast the expected number of rooms to be sold for each month, that is, July September 2014. 2. Forecast the room revenue for each of the three months of 2014.
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