The weekly price at an extendedstay hotel renting by the wee

The weekly price at an extended-stay hotel (renting by the week for business travelers) is $950. Operating costs average $20,000 per week, regardless of the number of rooms rented. Construct a spreadsheet model to determine the profit if 40 rooms are rented. The manager has observed that the number of rooms rented during any given week varies between 32 and 50 (the total number of rooms available).

A. Use data tables to evaluate the profit for this range of unit rentals.

B. Suppose the manager is considering lowering or increasing the weekly price by $100. How will profit be affected?

Solution

operating weekly cost 20000 dollars no. of bookings operating cost total earning through rental profit weekly price at the extended hotel room 950 dollars 32 20000 30400 10400 stay 40 bookings 33 20000 31350 11350 total 38000 34 20000 32300 12300 profit 18000 35 20000 33250 13250 36 20000 34200 14200 37 20000 35150 15150 38 20000 36100 16100 39 20000 37050 17050 40 20000 38000 18000 41 20000 38950 18950 42 20000 39900 19900 43 20000 40850 20850 44 20000 41800 21800 45 20000 42750 22750 46 20000 43700 23700 47 20000 44650 24650 48 20000 45600 25600 49 20000 46550 26550 50 20000 47500 27500 32 20000 33600 13600 33 20000 34650 14650 34 20000 35700 15700 35 20000 36750 16750 36 20000 37800 17800 37 20000 38850 18850 38 20000 39900 19900 39 20000 40950 20950 40 20000 42000 22000 41 20000 43050 23050 42 20000 44100 24100 43 20000 45150 25150 44 20000 46200 26200 45 20000 47250 27250 46 20000 48300 28300 47 20000 49350 29350 48 20000 50400 30400 49 20000 51450 31450 50 20000 52500 32500