Leisure Hotels Ltd is planning to build another 700-room complex, it has been suggested that because the existing hotels average only 70% occupancy on an annual basis, the new complex should have only 500 rooms. It has been estimated that the cost per room per annum is Kshs. 21,000. The following data based on demand at similar complexes has been obtained: Number of Days Daily Demand Average Price per Occupied Room per Day

Peak Season 200 800 Kshs. 2000

In Between 80 600 Kshs. 1800

Slack Season 85 500 Kshs. 1600

a. Prepare a pay -off table for a complex with 500, 600, 700, and 800 rooms

b. On the basis of this data advise management as to the number of rooms it should include

c. State with reason two further categories of data that would be useful before making the final decision