A package holiday company is about to block book hotel rooms for the coming season. The number of holidays actually booked is equally likely to be any number between 0 and 99 (for simplicity rather than reality). Each room booked costs the company $250 and they can sell them for $350. a) How many rooms should the company book if unsold rooms have no value? b) How many rooms should it book if unsold rooms can be sold as last-minute bookings for $100 each?
A package holiday company is about to block book hotel rooms for the coming season. The number of holidays actually booked is equally likely to be any number between 0 and 99 (for simplicity rather than reality). Each room booked costs the company $250 and they can sell them for $350. a) How many rooms should the company book if unsold rooms have no value? b) How many rooms should it book if unsold rooms can be sold as last-minute bookings for $100 each?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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![A package holiday company is about to block book
hotel rooms for the coming season. The number of
holidays actually booked is equally likely to be any
number between 0 and 99 (for simplicity rather than
reality). Each room booked costs the company $250
and they can sell them for $350.
a) How many rooms should the company book if
unsold rooms have no value?
b) How many rooms should it book if unsold rooms
can be sold as last-minute bookings for $100 each?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1516f125-856f-4026-8d08-7de3645b541e%2F93a68b29-cd81-4297-a78a-a80b7ab69d85%2Feawlw6b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A package holiday company is about to block book
hotel rooms for the coming season. The number of
holidays actually booked is equally likely to be any
number between 0 and 99 (for simplicity rather than
reality). Each room booked costs the company $250
and they can sell them for $350.
a) How many rooms should the company book if
unsold rooms have no value?
b) How many rooms should it book if unsold rooms
can be sold as last-minute bookings for $100 each?
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