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e01m2Rentals.xlsx

Rental Rates

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?