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help pls Analyze Cityscape Hotels Otyscape Hotels has 200 rooms avallable in a major metropolitan city. The hotel is able to attract business customers during
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Analyze Cityscape Hotels Otyscape Hotels has 200 rooms avallable in a major metropolitan city. The hotel is able to attract business customers during the weekdays and leisure customer the weekend. However, the leisure customers on weekends occupy fewer rooms than do business customers on weekdays. Thus, Ctyscape plans to provide spec weekend pricing to attract additional leisure customers. A hotel room is priced at $180 per room night. The cost of a hotel room night includes the foliowing: The special weekend price is proposed for $120 per room night. At this price, it is anticipated that average occupancy for the weekend (Friday, Saturday, and Su increase from 30% to 50% of available rooms. a. What is the contribution margin for a room night under the normal pricing if only the hotei depreciation and hotel staff (excluding housekeeping) are assume all occupancy levels? b. Determine the contribution margin for a room night under the proposed weekend pricing. c. Prepare a differtntial analysis showing the differential income for an average weekend between the existing (Aiternative 1) and discount (Alternative 2) price plan. Differential Analysis Continue with Existing Plan (A/t, 1) or Execute the Discount Plan (Ait, 2) Step by Step Solution
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