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The owner of the Moxy Hotel in downtown Washington, DC, offers two room types: deluxe and regular, the latter of which incurs a variable cost

The owner of the Moxy Hotel in downtown Washington, DC, offers two room types: "deluxe" and "regular", the latter of which incurs a variable cost of $50 and generates a contribution margin of 60% for a one-night stay during the workweek. Under the assumption that the variable cost of a deluxe room is the same as that of a regular room, what should the price of a deluxe room during the workweek be so that it is available at least 75% of the time? [5]

a. $500

b. $167

c. $250

d. $125

e. $335

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