Excess Capacity

Assume Marriott International just opened a new hotel in Bethesda, MD$.$ The hotel has $637$ rooms, or $232,505$ room$-$nights per year $($equal to $365$ x $637).$ The hotel was built with the aim that it would be $90\%$ occupied during the spring and summer months, and it would be at a much lower capacity of $50\%$ during the remaining portion of the year. The cost of the building cleaning and maintenance is estimated to be $$72,800,000$ per year.

a$.$ Calculate the practical capacity of the hotel.

Note: Show all decimal places in your answer.

Answer $1$

$0$

room$-$nights

b$.$ Calculate the cost per room night of cleaning and maintenance.

Note: Round answer to the nearest cent.

$Answer $2$

$0$

c$.$ Calculate the cost of excess capacity for the year.

Note: Use rounded answer from part b to calculate the answer to this question.

Note: Round final answer to the nearest dollar.

$Answer $3$