The weekly price at an extended-stay hotel (renting by the week for business travelers) is $950. Operating costs average $20,000 per week, regardless of the number of rooms rented. Construct a spreadsheet model to determine the profit if 40 rooms are rented. The manager has observed that the number of rooms rented during any given week varies between 32 and 50 (the total number of rooms available).
a. Use data tables to evaluate the profit for this range of unit rentals.
b. Suppose the manager is considering lowering or increasing the weekly price by $100. How will profit be affected?