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

question 75

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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.
-If the number of available suites increases by 1 to 756,using the Lagrange multiplier,the total revenue would ________.

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Values-Based Leadership

A leadership approach that is rooted in guiding principles and values, influencing others by embodying and promoting those values.

Honesty

The quality of being truthful, fair, and free from deceit in one's actions and statements.

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A style of leadership that distributes influence among groups and individuals to achieve organizational or team goals.

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