As the manager of a 90-unit motel you know that all units
Question # 00564261
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Updated on: 07/22/2017 12:37 AM Due on: 07/22/2017
As the manager of a 90-unit motel you know that all units are occupied when you charge $120 a day per unit. Each occupied room costs $68 for service and maintenance a day. You have also observed that for every 2x dollars increase in the daily rate above $120, there are 3x units vacant. Determine the daily price that you should charge in order to maximize profit. Calculate the number of occupied units. Assuming that fixed cost is $704 calculate optimal profit.
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Solution: As the manager of a 90-unit motel you know that all units