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Problem 16.7 The LeafyLodge Hotel has one remaining room to be booked for the night of 1st August. The hotel is expecting a relatively low
Problem 16.7 The LeafyLodge Hotel has one remaining room to be booked for the night of 1st August. The hotel is expecting a relatively low occupancy, however, during the subsequent six days. LeafyLodge's Revenue Manager is confident that the last room to be booked on 1st August could be sold for $250. As an alternative, the room could be booked as the first night of a "three room nights at $120 per night" package. Variable room cleaning costs are $25 per room night sold Required: Demonstrate whether the I eafyLodge Hotel should sell the 1st August room night as a single night sale for $250, or as the first night of a "three room nights at $120 per night" package
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