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Problem 3 (15%) AMB's Car Rental is evaluating its rental prices in the pandemic era. The data during the first year pandemic show that the
Problem 3 (15%) AMB's Car Rental is evaluating its rental prices in the pandemic era. The data during the first year pandemic show that the rental on the weekend (Saturday and Sunday) is doubled compare to other days. Here is the complete information: average rental per day on Friday and Saturday 8 rentals 4 rentals average rental per day on other days rental hours hours per day 18 hours 10 cars Total units of cars available for rent Variable operating costs per hour Marketing costs per week Depreciation of car to consider/car/week Customer service costs per day Rp20.000/hr Rp2.500.000/week Rp200.00/car/week Rp500.000/day Required: a) AMB owners plans to charge customer on weekend more than the other days. He plans to charge 30% of margin in the weekend instead of 25% as in the weekdays. Determine what the price he will charge for customers on the weekdays and the weekend. Why should he charge different price for different day? (11%) b) Beside its cost, explain two other cost he has to consider for not to make wrong decision for the profitability. (4%)
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