Question

The X Hotel has an occupancy rate of 97% during busy season and 62% during the rest of the year. It makes $80 (revenue - variable costs) per room per night. Busy season accounts for 30% of the year. After covering it's $4M in annual fixed costs, the total profit for the Pinkerton Hotel was $4,468,000. How many rooms are in the X Hotel? 400 O 650 150 200​

Answer 1

Using proportions, it is found that there are 200 rooms in hotel X.

What is a proportion?

A proportion is a fraction of a total amount.

The X Hotel has an occupancy rate of 97% during busy season(30% of the year) and 62% during the rest of the year(70%), hence the mean occupancy rate is of:

R = 0.3 x 97% + 0.62 x 70% = 72.5%.

The total profit for the Pinkerton Hotel was $4,468,000, hence considering that it makes $80 per room per night, in a 365-day year:

80N x 0.725 x 365 = 4,468,000

N = 4,468,000/(80 x 0.725 x 365)

N = 211.

Which is closest to 200, hence, there are 200 rooms in hotel X.

More can be learned about proportions at https://brainly.com/question/24372153