Assume Marriott International just opened a new hotel in Bethesda, MD. The hotel has 245 rooms, or 89,425 room - nights per year (equal to 365 x 245). The hotel was built with the aim that it would be 90% occupied during the spring and summer months, and it would be at a much lower capacity of 50% during the remaining portion of the year. The cost of the building cleaning and maintenance is estimated to be $ 28,000,000 per year. Calculate the cost of excess capacity for the year. Note: Use rounded answer from part b to calculate the answer to this question. Note: Round final answer to the nearest dollar.
Assume Marriott International just opened a new hotel in Bethesda, MD. The hotel has 245 rooms, or 89,425 room - nights per year (equal to 365 x 245). The hotel was built with the aim that it would be 90% occupied during the spring and summer months, and it would be at a much lower capacity of 50% during the remaining portion of the year. The cost of the building cleaning and maintenance is estimated to be $ 28,000,000 per year. Calculate the cost of excess capacity for the year. Note: Use rounded answer from part b to calculate the answer to this question. Note: Round final answer to the nearest dollar.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Assume Marriott International just opened a new hotel in Bethesda, MD. The hotel has 245 rooms, or
89,425 room - nights per year (equal to 365 x 245). The hotel was built with the aim that it would be 90%
occupied during the spring and summer months, and it would be at a much lower capacity of 50% during
the remaining portion of the year. The cost of the building cleaning and maintenance is estimated to be $
28,000,000 per year. Calculate the cost of excess capacity for the year. Note: Use rounded answer from
part b to calculate the answer to this question. Note: Round final answer to the nearest dollar.
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