Use the Table Below to Answer the Following Question(s) -Calculate the Customer Arrivals at the Metza

question 60

Multiple Choice

Use the table below to answer the following question(s) .
Below is a room overbooking model spreadsheet for the Metza, a hotel chain. The hotel has 425 rooms priced at $180 per day each, and is usually fully booked. Reservations can be cancelled any time before 5:00 p.m. with no penalty. The hotel estimates an average overbooking cost of
$150. Customer demand is set at 400 with an average cancellation of 20. $\begin{array}{|c|l|l|}\hline &A&B\\\hline1 & \begin{array}{c}\text { Hotel Overbooking Model } \\\text { for the Metza group of } \\\text { hotels }\end{array} & \\\hline 2& & \\\hline 3 & \text { Data } & \\\hline 4 & & \\\hline 5 & \text { Rooms Available } & 425 \\\hline 6 & \text { Price per room } & \$ 180 \\\hline 7 & \text { Overbooking Cost } & \$ 150 \\\hline 8 & & \\\hline 9 & \text { Model } & \\\hline 10 & & \\\hline 11 & \text { Reservation Limit } & 425 \\\hline 12 & \text { Customer Demand } & 400 \\\hline 13 & \text { Reservation Made } & \\\hline 14 & \text { Cancellations } & 20 \\\hline 15 & \text { Customer Arrivals } & \\\hline 16 & \text { Overbooked Customers } & \\\hline\end{array}$
-Calculate the customer arrivals at the Metza.

• A) 425
• B) 405
• C) 400
• D) 380

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