What Is the Denominator in the Formula Revenue Managers Use

question 12

Multiple Choice

What is the denominator in the formula revenue managers use to calculate GOPAR?

• A) ADR
• B) Total rooms sold
• C) Total operating revenue
• D) Total rooms available to be sold

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Definitions:

Short Run

In economics, the short run is a period in which at least one input, like equipment or labor, is fixed and cannot be changed, influencing decision-making and production levels.

Aggregate Quantity Supplied

The total amount of goods and services that producers are willing and able to supply at a given price level in an economy.

Free Trade Credit

Credit received during the discount period.

Discount Period

The time frame during which a bill or invoice can be paid at a reduced rate before full payment is required.