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Analyze Cityscape Hotels Cost Per Room Night (at normal occupancy) a. What...

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Question

Accounting

Analyze Cityscape Hotels
Cost Per Room Night
(at normal occupancy)
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?
b. Determine the contribution margin for a room night under the proposed weekend pricing.
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 Analysis
Continue with Existing Plan (Alt.1) or Execute the Discount Plan (Alt.2)
d. Should manaement accept the proposed weekend pricing plan?
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