how much should be charged per unit per day to maximize profit?
Hotel Prices
ello! asked:
You manage a 160 unit motel. All units will be occupied, on average, when you charge $50 per day per unit. Experience shows that for each $1 per day per unit that you increase the price, you will accrue 2 vacancies. Each occupied room costs $4 per day to clean and supply. On this basis, what price, in dollars, should you charge per unit per day to maximize your profit?
You manage a 160 unit motel. All units will be occupied, on average, when you charge $50 per day per unit. Experience shows that for each $1 per day per unit that you increase the price, you will accrue 2 vacancies. Each occupied room costs $4 per day to clean and supply. On this basis, what price, in dollars, should you charge per unit per day to maximize your profit?
a. $87
b. $82
c. $77
d. $72
e. $67
f. $62
g. $57
h. none of these
Adam
July 21st, 2009 at 11:48 pm
Brenda
$67 leaving you with a profit of$7938