Chapter 8.2, Problem 74E

To determine

To find:Find the maximum rate per package per resort when the rates are expected to increase by no more than $12\%$ by next season.

Answer to Problem 74E

The maximum rates per package per resortare $\left[\begin{array}{cccc}688.8& 750.4& 828.8& 1108.8\\ 1114.4& 1153.6& 1321.6& 1237.6\end{array}\right]$ .

Explanation of Solution

Given information:

A travel agent identifies four resorts with special all-inclusive packages. The current rates for two types of rooms (double and quadruple occupancy) at the four resorts are represented by $A$ .

  

Calculations:

Since the rates are expected to increase by no more than $12\%$ by next season, the maximum rate per package per resort can be computed by $(1+12\%)A$ , that is scalar multiplication of $1.12$ times $A$ .

  $\begin{array}{l}1.12A=1.12\left[\begin{array}{cccc}615& 670& 740& 990\\ 995& 1030& 1180& 1105\end{array}\right]\\ =\left[\begin{array}{cccc}1.12\times 615& 1.12\times 670& 1.12\times 740& 1.12\times 990\\ 1.12\times 995& 1.12\times 1030& 1.12\times 1180& 1.12\times 1105\end{array}\right]\\ =\left[\begin{array}{cccc}688.8& 750.4& 828.8& 1108.8\\ 1114.4& 1153.6& 1321.6& 1237.6\end{array}\right]\end{array}$