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Problem 2. Ada Hotel sells two room tpes: standard rooms and deluxe rooms. Average daily rate (ADR) and variable costs (VC) of the two room

Problem 2.
Ada Hotel sells two room tpes: standard rooms and deluxe rooms. Average daily rate (ADR) and variable costs (VC) of the two room types are provided in the table below: (Hint: Treat two room types as two different products.)
ADR ($) Variable Cost ($)
Standard rooms 461.20 299.78
Deluxe rooms 737.92 427.99
The Mock Hotel's fixed costs for a month is = = 295168
Sales mix (contribution of each room type to total room revenue) of the hotel is:
Deluxe rooms 77%
Standard rooms 23%
Required:
Using the information provided above, answer the following questions:
a. What is the break-even room nights (number) for the the hotel given the sales mix of the two room packages?
b. What must be the room revenue for the hotel to make a profit of $50,000 a month?
c. If the hotel is considering an advertisement campaign for its rooms with a cost $5,000, hom much in room revenue should be generated to cover this extra cost?

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