What is the contribution margin for a room night under the normal pricing if only the hotel depreciation and hotel staff (excluding housekeeping) are assumed fixed for all occupancy levels? fill in the blank 1 of 1$ b. Determine the contribution margin for a room night under the proposed weekend pricing. fill in the blank 1 of 1 Question Content Area c. Prepare a differential analysis showing the differential income for an average weekend between the existing (Alternative 1) and discount (Alternative 2) price plan. Differential AnalysisContinue with Existing Plan (Alt. 1) or Execute the Discount Plan (Alt. 2) Line Item Description Continue with Existing Plan (Alternative 1) Execute the Discount Plan (Alternative 2) Differential Effects (Alternative 2) Revenues per weekend $Revenues per weekend $Revenues per weekend $Revenues per weekend Variable costs per weekend: blank blank blank Housekeeping service Housekeeping service Housekeeping service Housekeeping service Utilities Utilities Utilities Utilities Amenities Amenities Amenities Amenities Total variable cost per weekend $Total variable cost per weekend $Total variable cost per weekend $Total variable cost per weekend Contribution margin per weekend $Contribution margin per weekend $Contribution margin per weekend $Contribution margin per weekend

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 2MAD: Service yield pricing and differential equations Cityscape Hotels has 200 rooms available in a major...

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Line Item Description	Cost Per Room Night (at normal occupancy)
Housekeeping service	$23
Utilities	7
Amenities	3
Hotel depreciation	55
Hotel staff (excluding housekeeping)	42
Total	$130

Question Content Area

a. What is the contribution margin for a room night under the normal pricing if only the hotel depreciation and hotel staff (excluding housekeeping) are assumed fixed for all occupancy levels?
fill in the blank 1 of 1$

b. Determine the contribution margin for a room night under the proposed weekend pricing.
fill in the blank 1 of 1

Question Content Area

c. Prepare a differential analysis showing the differential income for an average weekend between the existing (Alternative 1) and discount (Alternative 2) price plan.

Differential AnalysisContinue with Existing Plan (Alt. 1) or Execute the Discount Plan (Alt. 2)

Line Item Description	Continue with Existing Plan (Alternative 1)	Execute the Discount Plan (Alternative 2)	Differential Effects (Alternative 2)
Revenues per weekend	$Revenues per weekend	$Revenues per weekend	$Revenues per weekend
Variable costs per weekend:	blank	blank	blank
Housekeeping service	Housekeeping service	Housekeeping service	Housekeeping service
Utilities	Utilities	Utilities	Utilities
Amenities	Amenities	Amenities	Amenities
Total variable cost per weekend	$Total variable cost per weekend	$Total variable cost per weekend	$Total variable cost per weekend
Contribution margin per weekend	$Contribution margin per weekend	$Contribution margin per weekend	$Contribution margin per weekend

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