Five seasons hotel is a chain with 10 hotels. strategically, the chain implements a cookie-cutter approach to building a running its hotels, in that all hotels are practically identical. five seasons invested $150 million in acquiring the land for all hotels and $500 million in building and furninshing the 10 hotels to a guest ready stage. Each hotel has 150 rooms. each room has a rack rate of $200 per night but the hotel gives an average disccount of $30 per night off this base price. each hotel costs $1 million in materials to run and is staffed by 58 employees, each paid an average compensation of $50,000 a year. the chains average occupancy rate is 58% and the company operates 365 days a year. for the following changes to the hotel chain, consider each change separately. in other words, for part (a) only consider the change stated in (a), for part (b) only consider the change stated in (b), etc.

A) suppose that hotel managers are authorized to increase the average discount given per room to $50; this results in an increased occupancy rate of 62%. what would the resulting ROIC be? B) as a cost cutting measure, the number of employees for each hotel is reduced from 58 to 53. however, the resulting loss of quality causes a decreased occupancy rate of 55%. what would the resulting ROIC be? C) an increase is made to the marketing budget of each hotel, such that the operating cost of each hotel increases to $1,100,000. This results in an increased occupancy of 65%. What would the resulting ROIC be?