A 100-room hotel recorded an occupancy percentage of 70% average room rate? The franchise fee for the hotel was based on the following fee structure: The initial fee is based on a minimum fee of $30,000 plus $130 per room in excess of 150 rooms. The hotel is required to pay a 5% of rooms revenue royalty fee, a 4% rooms revenue reservation fee, a marketing fee a $0.50 per available room per day, and a $1.00 per occupied room frequent traveler fee (frequent travelers represent 30% of total rooms occupied). Find the total franchise fee on a per available room basis. Assume 360 days in a year.

A 100-room hotel recorded an occupancy percentage of 70% average room rate? The franchise fee for the hotel was based on the following fee structure: The initial fee is based on a minimum fee of $30,000 plus $130 per room in excess of 150 rooms. The hotel is required to pay a 5% of rooms revenue royalty fee, a 4% rooms revenue reservation fee, a marketing fee a $0.50 per available room per day, and a $1.00 per occupied room frequent traveler fee (frequent travelers represent 30% of total rooms occupied). Find the total franchise fee on a per available room basis. Assume 360 days in a year.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 21P

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