Posted by jesmin on April 04, 19100 at 23:21:44:
1 The Pacific Inn, a hotel with 44 rooms has recently been purchased by a group of
investors. Some market research has led them to estimate the daily demand for the
hotel rooms by the function,
P = 40 - 1/2Q
Where P is the price per room per day (in $) and Q is the number of rooms that will
be rented.
a) If the objective is to achieve full occupancy, what price per room should be
charged?
Analysis of the accounting records of the previous owner suggest the daily costs
can be estimated by the function.
Total cost = 100 + 4Q (dollars)
Where Q is the number of rooms rented.
b) Find the profit function and sketch it.
c) If the objective is to maximise daily profit, how many rooms should be rented, and
what price should be charged?
d) Find the profit assuming all rooms are oocupied.
e) Find the prices ( the revenue and the cost) associated with the break-even point.
(Remember: the number of rooms cannot be a fraction!)