Peter owns a hotel. He has found that when he charges $119 for a night’s stay, the average occupancy is 372 people. In addition,
Peter has found that with every $15 increase in the nightly cost, the hotel occupancy decreases by an average of 25. Write an expression to represent the nightly cost with x $15 price increases.
Without price increase, Cost/night = $119 Average occupancy = 372 The revenue will be 119*372 = $44,268
For every $15 price increase, the occupancy decreases by 25. Therefore with x price increases, Cost/night = $119 + 15x Occupancy = 372 - 25x The revenue will be $(119 + 15x)*(372 - 25x)
Answer: The nightly cost with x $15 price increases is $119 + 15x.
