In Many High-End Resort Markets, Westin Hotels Compete Directly with Crown

question 83

Multiple Choice

In many high-end resort markets, Westin hotels compete directly with Crown Plaza hotels. When it comes to pricing, Westin tends to charge its guests similar rates to what the Crown Plaza hotels charge. Westin is using a ________ pricing strategy.

• A)maximizing profits
• B)target profit
• C)target return
• D)competitive parity
• E)sales oriented

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Definitions:

Manufacturing Overhead

Indirect costs related to manufacturing that cannot be directly tied to a specific product, such as maintenance and factory utilities.

Cost Formula

An equation used to calculate the total cost of production or service delivery, combining fixed costs, variable costs per unit, and expected activity levels.

Spending Variance

The difference between the actual cost incurred and the budgeted or expected cost, often analyzed for cost control purposes.

Cleaning Equipment

Equipment specifically designed for cleaning operations, encompassing a range of items from brooms and mops to sophisticated washing machines.