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There is a small hotel at Lansdowne, a small hill station in Uttarakhand, havin...

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There is a small hotel

at Lansdowne, a small hill station in Uttarakhand, having 9 rooms. The hotel

has no facility for room heating in winters. Many guests coming in winters ask

the hotel management to provide room heaters. The hotel management plans to offer

room heaters to the room occupants on extra payment of Rs. 200 for a room.

Based on feedback forms filled by old customers, the management calculates that

about 35% of his customers would be willing to rent a room heater.

The management obtain four-room

heaters on rent of Rs. 20 per day per heater and the electricity charges are

Rs.100 per day per heater.  

At 100% occupancy,

obtain the expected profit per day to the hotel through room heaters during

winters. 

 

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