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Golden suites is a luxury hotel 600 suites. It's a regular suite rate is $415 per night per suite. The hotels cost per night is
Golden suites is a luxury hotel 600 suites. It's a regular suite rate is $415 per night per suite. The hotels cost per night is $267 per sweet and consists of the following:
A national nonprofit organization would like to hold their annual meeting at the hotel during a period of the year when the hotel occupancy is very low. The nonprofit would reserve 45 suites for five nights if the hotel could offer a discounted rate of $225 per night. The hotel manager is inclined to reject the offer because the cost per suite per night is $267.
Required:
A. Prepare a quantitative analysis of this offer for the hotel manager.
B.Based on your quantitative analysis, should the offer be excepted or rejected?
C. How much will net income increase or decrease at the manager does except the offer
D. What is the lowest price per night the manager should accept
E. Explain one qualitative issue the manager should consider for this decision.
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