Chuck Stout is the RM for the Holiday Inn Express. His 220-room property normally sells 85percent of its rooms on Tuesday nights at an ADR of $141.50. All variable costs related toselling his rooms are $55.00 per room. The DOSM at his Holiday Inn Express is proposing toplace a bid to sell 125 rooms for a Tuesday night next month at a rate of $109.00 per room.Chuck believes that if the hotel wins this group rooms bid, the transient room sales for that daywill ensure a sell-out at the rate of $141.50.p.s. Net Revenue = Total Revenue - Total Variable Cost

In the above question, revenue differ in case of winning the group room contract and in case of not…

Answered: Chuck Stout is the RM for the Holiday…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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