Use the Case Below to Answer the Following Question(s)

question 79

Multiple Choice

Use the case below to answer the following question(s) .
The Tipton Hotel is considering a major remodeling effort and needs to determine the best combination of rates and suite sizes to maximize revenues.Currently,the hotel has 755 suites with the following history: Each market segment has its own price/demand elasticity.Estimates are: This means,for example,that a 1% decrease in the price of a standard suite will increase the number of suites sold by 1.5%.Similarly,a 1% increase in the price will decrease the number of suites sold by 1.5%.For any pricing structure (in $) ,the projected number of suites of a given type sold (we will allow continuous values for this problem) can be found using the formula:
(Historical average number of suites sold) + (Elasticity) (New price - Current price) (Historical average number of suites sold) /(Current price)
The hotel owners want to keep the price of a standard suite between $70 and $90; a gold suite between $90 and $110; and a platinum suite between $120 and $149.
Define S = price of a standard suite,G = price of a gold suite,and P = price of a platinum suite.
-The projected number of total suites sold or the total suite capacity is modeled by the constraint ________.

• A)1,755 + 6.176471S + 4.081633G + 1.079137P ≥ 755
• B)6.176471 + 1,730.755S + 1.079137G + 4.081633P ≥ 755
• C)1,775 - 6.176471S - 4.081633G - 1.079137P ≤ 755
• D)1.079137 - 6.176471S - 4.081633G - 1,730.755 P ≤ 755

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Definitions:

Fair Value

Fair Value is the estimated price at which an asset or liability could be traded in an orderly transaction between market participants at the measurement date.

Corporate Assets

Resources owned by a corporation that have economic value and can contribute to the company's future income or benefits.

Liquidation

The process of winding up a company's operations, selling its assets, and distributing the proceeds to creditors and shareholders.

Stockholders' Equity

Refers to the ownership interest of shareholders in a corporation, calculated as the company's total assets minus its total liabilities.