Answered step by step
Verified Expert Solution
Question
1 Approved Answer
if you are not familiar with Priceline.com Inc., go to its website. Assume that an individual names a price of $85 on www.priceline.com for
if you are not familiar with Priceline.com Inc., go to its website. Assume that an individual "names a price" of $85 on www.priceline.com for a room in Nashville, Tennessee, on August 22. Assume that August 22 is a Saturday, with low expected room demand in Nashville at a Marriott International, Inc. hotel, so there is excess room capacity. The fully allocated cost per room per day is assumed from hotel records as follows: Housekeeping labor cost* Hotel depreciation expense Cost of room supplies (soap, paper, etc.) Laundry labor and material cost* Cost of desk staff Utility cost (mostly air conditioning) Total cost per room per day $ 38 43 8 10 6 5 $110 *Both housekeeping and laundry staff include many part-time workers so that the workload is variable to demand. For your initial post, discuss if Marriott should accept the customer bid for a night in Nashville on August 22 at a price of $85? Why or why not?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started