Business, 12.03.2020 00:35 tdahna0403

Jim Jones, a motel owner, noticed that just down the street the "Motel 36" advertises a $36-per-night room rental rate on its sign. As a result, this competitor has rented all 80 rooms every day by late afternoon. Jim, on the other hand, does not advertise his rate, which is $54 per night, and he averages only a 68% occupancy of his 50 rooms. There are a lot of other motels nearby, but only Motel 36 advertises its rate on its sign. (Rates at the other motels vary from $48 to $80 per night.) Jim estimates that his actual incremental cost per night for each room rented, rather than remaining vacant, is $12. This $12 pays for all the cleaning, laundering, maintenance, utilities, and so on. Jim believes his eight alternatives are:ResultingAlternative Occupancy RateAdvertiseAnd Charge1 $35 per night 100%2 42 per night 943 48 per night 80Do Not AdvertiseAnd Charge5 $48 per night 70%6 54 per night 687 62 per night 668 68 per night 56What should Jim do? Show how you reached your conclusion

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Jim Jones, a motel owner, noticed that just down the street the "Motel 36" advertises a $36-per-nigh...