Question

The Pinkerton 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 Pinkerton Hotel?

Answer 1

There are 200 rooms in the Pinkerton Hotel which has an occupancy rate of 97% during busy season and 62% during the rest of the year.

What is a proportion?

Proportion refers to comparison between two numbers. The numbers can represent a comparison between things or people.

We can make the hotel Y

The Y 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:

Y

= 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

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

= 211

Hence, it is found that there are 200 rooms in the Pinkerton Hotel.

Learn more about proportions here : https://brainly.com/question/27121435

Answer 2

Answer:

400

Explanation:

(0.97) X x X 80 X (0.3 X 365)] + [(0.62) X x X 80 X (0.7 X 365)] = 4000000 + 4468000

Solve for x

x = 400