Question

The management of 80-room Brize Garden Suites, which has single and double rooms only, has acquired the following internal financial data: - Occupancy of 72.00% - Projected after-tax average ADR of $64.00 - 30.00% of double room occupancy - A price difference of $28.00 more than single rooms for double rooms

Based on the financial information given, calculate the individual ADRs for both single and double rooms for Brize Garden Suites (Note: Round the total number of rooms sold, total number of double rooms, and total number of single rooms to a nearest whole number).

Group of answer choices

ADR of $61.11 for singles and ADR of $89.11 for double rooms.

ADR of $50.44 for singles and ADR of $78.44 for double rooms.

ADR of $55.80 for singles and ADR of $71.42 for double rooms.

ADR of $55.80 for singles and ADR of $83.80 for double rooms.

Answer 1

Answer
Data Given
Total No of Room		80
Total Occupancy		72%	58
Projected after tax average ADR		$64	17	24
Double room occupancy		30%	41	34
Price difference between Singal & Double room occupancy		$28
Total room occupancy in no of Room		58
Double room occupancy in no of Room		17	$476
Single room occupancy in no of Room		41
Total after tax average ADR		$3,712
Suppose single room price is		X
Then Double room price is		X + $28
Total after tax average ADR	`=	Single Room Occupancy * Single room price + Double Room Occupancy * Double room price
$3,712	`=	41 * X + 17 * (X + $28)
$3,712	`=	41X + 17X + $476
$3,236	`=	58X
X	`=	$3236 / 58
X	`=	55.79
Single room price is	`=	55.79	$
Double room price is	`=	83.79	$