The Typhoon Resort, which has 100 rooms, has currently been experiencing an occupancy dip to a 60.00% level. The current rack rate is $80.00 with a marginal cost of $20.00 per room. The management of this resort would like to see the options when they apply $10.00 and 10.00% discounts from the current rack rate separately. Based on these two discount situations, what equivalent occupancy percentages must be achieved to maintain the same levels of contribution margin for both $10.00 and 10.00% discounts from the current rack rate? Also, what is the increase in #of rooms sold over the current #of rooms sold when the management applies $10.00 discount (assume that marginal cost will remain the same for all of the discount situations)?

Options:

A. 72.00% at $10 discount and 69.23% at 10% discount

B. 72.00% at $10 discount and 65.50% at 10% discount

C. 71.00% at $10 discount and 70.40% at 10% discount

D. 69.40% at $10 discount and 70.94% at 10% discount