| Beachfront Guest House |
| Effective May 1, 2016 |
| | | Peak Rentals | | Off-Peak Rentals |
| Rental Type | No. Units | Per Day | Maximum Revenue | Per Day | Maximum Revenue | Discount Rate |
| Studio Apartment | 6 | 149.95 | | 112.5 |
| 1 Bedroom Suite | 4 | 250.45 | | 174 |
| 2 Bedroom Suite | 2 | 450 | | 247.55 |
| Questions & Answers |
| Assume all 12 units are rented as you answer the following questions: |
| (1) Which rental type generates the most maximum revenue for peak rental periods? |
| (2) Which rental type generates the most maximum revenue for off-peak rental periods? |
| (3) Why is there a difference? |
| (4) How much would the 2 Bedroom Suite Off-Peak per day rate need to be to have the same off-peak maximum revenue as the 1 Bedroom Suite? |