Nabisco used a free-standing rack in the shape of a bus to promote its Ritz and other cracker products. The goal of the sales pr
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Answer:
In order to maximize average daily profit, optimal number of reservations = 100 rooms.
Explanation:
As for the provided information, we have
Total number of rooms = 100
Chances of guests not arriving = 5%
Therefore, guests to arrive = 95%
Thus, bookings = 100/95% = 105.26
Rounding off we have 105 rooms,
Let us assume, all rooms are booked and no cancellation is done, in that case,
Total revenue = $150 100 = $15,000
Less: Overbooked charges = $200 5 = ($1,000)
Less: Variable Cost = $30 100 = ($3,000)
Thus total revenue will be $11,000
In case of booking of 100 rooms the net revenue in case of 5% cancellations, shall be:
Rooms booked = 100 - 5% = 95
Revenue = 95 $150 = $14,250
Less: Variable Costs = 95 $30 = ($2,850)
Thus total revenue = $11,400
Since profit in case of booking 100 rooms is more in any case, even in case of least cancellation the revenue will increase.
Thus, this is the optimal number of reservations = 100
Answer:
Check the explanation
Explanation:
Labor Input is an indicator the pointer characterizing the labor expressed expenditure in man-hours on a production of a particular consumer value or on a technical operation.
Total product is the total amount of output that a firm produces; it is usually stipulated in relation to a variable input.
Marginal Product is the physical efficiency or productive ability of an input in the change in output which results from employing one more unit of a particular input, presumptuous that the amounts of other inputs are kept constant.
Average Product is the amount of the overall output that was being produced per unit of a variable input, holding all other inputs at a constant rate.
The graphical solution to the question above can be seen in the attached image below.
