Nestled in the heart of the CBD within walking distance of the iconic Sydney Opera House, the Radisson Blu Plaza Hotel Sydney treats guests to an attractive blend of classic architecture and modern elegance. With 300 spacious rooms, they offer free wireless Internet, an on-site spa and an award-winning restaurant which offers complimentary breakfast. The management is planning for their peak and busy time of the year which is the last week of December from 24th December till 1st of January 2018. As there is tough competition this season they have planned for a lot of freebies this time by increasing expenses which in turn would allow them to book all the rooms. the following are the freebies that they have planned to provide
Radisson Blu has got two offers from travel agents in Sydney which they are likely to consider after seeking your advice as a revenue manager
Option A: If they accept this offer they will make a profit of $50000
Option B: If they accept this offer they will make a profit of $30000
Using the formula: BEP(no room) Break Even Point= Fixed cost/ Contribution margin per night room ?
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