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Tom Rodgers is the director of purchasing of Dart Industries. Tom is responsible for booking 1,000 rooms per month in the city that houses his
Tom Rodgers is the director of purchasing of Dart Industries. Tom is responsible for booking 1,000 rooms per month in the city that houses his company's corporate office. Tom approaches you, the DOSM/RM of the local Hawthorne Suites hotel, with a proposition. Instead of paying $159.99 per night; your hotel's normal room rate for corporate travelers, he proposes the following rate structure: Per month Rom Rate 1 to 100 101 to 400 $139.99 401 to 600 $119.99 601 to 1,000 $109.99 $159.99 A. Calculate the room revenue your hotel would receive if Tom booked: Room Purchased 250 rooms 350 rooms 401 rooms ADR Total Revenue Q4 Q5 Q6 B. Assume the variable cost associated with selling each room is $65.00. Calculate the after variable costs" revenue your hotel would receive if Tom booked: Rooms Purchased Variable Cost @ $65 per room After variable cost Revenue 250 rooms 350 rooms 401 rooms Q7 Q9 Q11 Q10 Q12
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