Service Yield Pricing and Differential Analysis Cityscape Hotels has 200 rooms available in a major metropolitan city. The hotel is able to attract business customers during the weekdays and leisure customers during the weekend. However, the leisure customers on weekends occupy fewer rooms than do business customers on weekdays. Thus, Cityscape plans to provide special weekend pricing to attract additional leisure customers. A hotel room is priced at $180 per room night. The cost of a hotel room night includes the following:   Cost Per Room Night(at normal occupancy) Housekeeping service   $ 23   Utilities   7   Amenities   3   Hotel depreciation   55   Hotel staff (excluding housekeeping)   42   Total   $130   The special weekend price is proposed for $120 per room night. At this price, it is anticipated that average occupancy for the weekend (Friday, Saturday, and Sunday) will increase from 30% to 50% of available rooms. a. What is the contribution margin for a room night under the normal pricing if only the hotel depreciation and hotel staff (excluding housekeeping) are assumed fixed for all occupancy levels? $ b. Determine the contribution margin for a room night under the proposed weekend pricing. $ c. Prepare a differential analysis showing the differential income for an average weekend between the existing (Alternative 1) and discount (Alternative 2) price plan. Use a minus sign to indicate subtracted or negative numbers or a loss. Differential Analysis Continue with Existing Plan (Alt. 1) or Execute the Discount Plan (Alt. 2)     Continue with Existing Plan (Alternative 1) Execute the Discount Plan (Alternative 2) Differential Effect on Income (Alternative 2) Revenues per weekend $ $ $ Variable costs per weekend:       Housekeeping service       Utilities       Amenities       Total variable cost per weekend $ $ $ Contribution margin per weekend $ $ $ d. Should management accept the proposed weekend pricing plan?

A. How many trips must Bristol sell every month to break even? B. Bristol's owner believes that 350 trips is a reasonable forecast of the average monthly demand. What is the margin of safety in term of the number of airport trips?

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Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost drivers—the number of cruises and the number of passengers—that it uses in its budgeting and performance reports. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 88 passengers can be accommodated on the tour boat. Data concerning the company’s cost formulas appear below:     Fixed Cost per Month Cost per Cruise Cost per Passenger Vessel operating costs $ 6,400 $ 478.00 $ 3.20 Advertising $ 2,600     Administrative costs $ 5,000 $ 32.00 $ 1.50 Insurance $ 3,300       For example, vessel operating costs should be $6,400 per month plus $478.00 per cruise plus $3.20 per passenger. The company’s sales should average $35.00 per passenger. In July, the company provided 51 cruises for a total of 3,000 passengers.   Required: Prepare the company’s flexible budget for…