REVENUE MANGEMENT FINAL EXAM 2026 LATEST
UPDATE QUESTIONS AND CORRECT VERIFIED
ANSWERS ALREADY GRADED A+
Last month Carl's hotel had an ADR index of 105%. What is true about his hotel's ADR last
month? - ANS-It was somewhat higher than the ADR of his competitive set
Last month Carl's hotel had an ADR of $200.00. The ADR for his comp. set for the same month
was $225.00. Prior to last month, Carl's Year-To-Date ADR index was 110%. What will always be
true about his Year-To-Date ADR index when last month's operating results are included in the
Year-To-Date data? - ANS-It will be less than 110%
This Year-To-Date, Carl's hotel is averaging an ADR of $125.00. The ADR of his comp. set for the
same period is $125.00. Assume Carl's comp. set is an appropriate one. What would you
recommend Carl do if his occupancy index for the same period is 140%? - ANS-Carefully
increase rack rates to optimize GOPPAR
Last month Carl's hotel had a RevPAR index of 100. His occupancy index was 132.5 and his ADR
index was 75.5. What is true about his hotel's performance last month? - ANS-His GOPPAR is
not optimized because it is low relative to the RevPAR index
Last month Carl's hotel had an ADR index of 80.0% and an occupancy index of 120%. What was
Carl's RevPAR index for last month? - ANS-96.0%
Last month Carl's hotel had a RevPAR index of 133.0%. Based on that information alone; what
does Carl know for sure about his hotel's performance last month? - ANS-His ADR or occupancy
index will exceed 100%
,Last month Carl's 500-room hotel had a comp. set that included five additional hotels offering a
total of 2000 rooms. What was Carl's supply share % last month? - ANS-20%
Last month Carl's hotel supplied 10.8% of the rooms in his comp set. It attracted 11.6% of all the
rooms sold (demand) and generated 9.1% of the total revenue achieved by the comp set. What
is true about Carl's hotel? - ANS-Its rates are low relative to the comp. set's and the hotel has
an occupancy index above 100%.
What metrics are best used to assess the relative merits of a specific lodging industry
distribution channel's contribution to a single hotel? - ANS-Rooms sold and Net ADR Yield
It is near the end of the month and Tamrika is a revenue manager considering the impact of
selling 200 room nights, for use this month, but at a room rate far below her hotel's average
room rate. What would be the impact on her hotel's operating statistics if she makes this sale? -
ANS-Increased RevPAR and reduced flow-thru %
1. Which of the following statements about restaurant pricing methods is true? - ANS-
Restaurant industry pricing methods are very different from hotel industry pricing methods
Shaniqua's restaurant utilizes a product cost percentage pricing system. What should be the
selling price for a steak dinner she sells if her total plate cost for the dinner is $7.00 and her
desired product cost is 25%? - ANS-$28.00
Shaniqua's restaurant utilizes a product cost percentage pricing system. She would like to apply
pricing factors to make pricing her menus easier. What would be the pricing factor she would
use when her desired product cost percentage for an item is 40%? - ANS-2.5
Which menu pricing system would utilize an operation's prime costs when calculating its selling
prices? - ANS-Product Cost: Plus
, In which menu pricing approach would Menu Engineering as proposed by Kasavana and Smith
be utilized? - ANS-Contribution Margin Pricing
What is the common feature in the Product Cost: Plus Pricing, the Contribution Margin Pricing
and the Product Cost Percentage Pricing systems? - ANS-The amount paid for products
For revenue managers seeking to optimize revenues in their foodservice operations, which
statement about menu prices is true? - ANS-An appropriate menu price should dictate an item's
cost
Shaniqua's restaurant utilizes a product cost percentage pricing system. She would like to sell an
item for $19.95. Her targeted product cost is 40%. With a 40% product cost, what is the amount
her kitchen staff can spend on product cost when making this item? - ANS-$7.98
Shaniqua's restaurant utilizes a contribution margin pricing system. She would like the selling
price of a new menu item she is introducing to be $10.00. Her required contribution margin is
$4.00. Her labor costs are 30%. What is the amount her kitchen staff can spend on product cost
when making the item? - ANS-$6.00
Why can foodservice operators sell a 20 year Scotch at a price higher than a one year old
Scotch? - ANS-The quality of a 20 year old Scotch is higher than a one year old Scotch
Assume a food and beverage operator offers guests a 20-year old Scotch at a price five times the
amount charged for one-year old Scotch. Assume also that the operator's customers very rarely
purchase the more expensive Scotch. Which statement would explain why the 20 year old
Scotch does not sell well? - ANS-Customers do not accept this seller's price-value proposition
Arthur's restaurant is extremely busy on Friday and Saturday. The manager of the operation
offers reduced prices on quick-to-prepare and quick-to-serve menu items on those two nights.
What revenue related factor is this restaurant manager seeking to positively influence? - ANS-
Capacity
UPDATE QUESTIONS AND CORRECT VERIFIED
ANSWERS ALREADY GRADED A+
Last month Carl's hotel had an ADR index of 105%. What is true about his hotel's ADR last
month? - ANS-It was somewhat higher than the ADR of his competitive set
Last month Carl's hotel had an ADR of $200.00. The ADR for his comp. set for the same month
was $225.00. Prior to last month, Carl's Year-To-Date ADR index was 110%. What will always be
true about his Year-To-Date ADR index when last month's operating results are included in the
Year-To-Date data? - ANS-It will be less than 110%
This Year-To-Date, Carl's hotel is averaging an ADR of $125.00. The ADR of his comp. set for the
same period is $125.00. Assume Carl's comp. set is an appropriate one. What would you
recommend Carl do if his occupancy index for the same period is 140%? - ANS-Carefully
increase rack rates to optimize GOPPAR
Last month Carl's hotel had a RevPAR index of 100. His occupancy index was 132.5 and his ADR
index was 75.5. What is true about his hotel's performance last month? - ANS-His GOPPAR is
not optimized because it is low relative to the RevPAR index
Last month Carl's hotel had an ADR index of 80.0% and an occupancy index of 120%. What was
Carl's RevPAR index for last month? - ANS-96.0%
Last month Carl's hotel had a RevPAR index of 133.0%. Based on that information alone; what
does Carl know for sure about his hotel's performance last month? - ANS-His ADR or occupancy
index will exceed 100%
,Last month Carl's 500-room hotel had a comp. set that included five additional hotels offering a
total of 2000 rooms. What was Carl's supply share % last month? - ANS-20%
Last month Carl's hotel supplied 10.8% of the rooms in his comp set. It attracted 11.6% of all the
rooms sold (demand) and generated 9.1% of the total revenue achieved by the comp set. What
is true about Carl's hotel? - ANS-Its rates are low relative to the comp. set's and the hotel has
an occupancy index above 100%.
What metrics are best used to assess the relative merits of a specific lodging industry
distribution channel's contribution to a single hotel? - ANS-Rooms sold and Net ADR Yield
It is near the end of the month and Tamrika is a revenue manager considering the impact of
selling 200 room nights, for use this month, but at a room rate far below her hotel's average
room rate. What would be the impact on her hotel's operating statistics if she makes this sale? -
ANS-Increased RevPAR and reduced flow-thru %
1. Which of the following statements about restaurant pricing methods is true? - ANS-
Restaurant industry pricing methods are very different from hotel industry pricing methods
Shaniqua's restaurant utilizes a product cost percentage pricing system. What should be the
selling price for a steak dinner she sells if her total plate cost for the dinner is $7.00 and her
desired product cost is 25%? - ANS-$28.00
Shaniqua's restaurant utilizes a product cost percentage pricing system. She would like to apply
pricing factors to make pricing her menus easier. What would be the pricing factor she would
use when her desired product cost percentage for an item is 40%? - ANS-2.5
Which menu pricing system would utilize an operation's prime costs when calculating its selling
prices? - ANS-Product Cost: Plus
, In which menu pricing approach would Menu Engineering as proposed by Kasavana and Smith
be utilized? - ANS-Contribution Margin Pricing
What is the common feature in the Product Cost: Plus Pricing, the Contribution Margin Pricing
and the Product Cost Percentage Pricing systems? - ANS-The amount paid for products
For revenue managers seeking to optimize revenues in their foodservice operations, which
statement about menu prices is true? - ANS-An appropriate menu price should dictate an item's
cost
Shaniqua's restaurant utilizes a product cost percentage pricing system. She would like to sell an
item for $19.95. Her targeted product cost is 40%. With a 40% product cost, what is the amount
her kitchen staff can spend on product cost when making this item? - ANS-$7.98
Shaniqua's restaurant utilizes a contribution margin pricing system. She would like the selling
price of a new menu item she is introducing to be $10.00. Her required contribution margin is
$4.00. Her labor costs are 30%. What is the amount her kitchen staff can spend on product cost
when making the item? - ANS-$6.00
Why can foodservice operators sell a 20 year Scotch at a price higher than a one year old
Scotch? - ANS-The quality of a 20 year old Scotch is higher than a one year old Scotch
Assume a food and beverage operator offers guests a 20-year old Scotch at a price five times the
amount charged for one-year old Scotch. Assume also that the operator's customers very rarely
purchase the more expensive Scotch. Which statement would explain why the 20 year old
Scotch does not sell well? - ANS-Customers do not accept this seller's price-value proposition
Arthur's restaurant is extremely busy on Friday and Saturday. The manager of the operation
offers reduced prices on quick-to-prepare and quick-to-serve menu items on those two nights.
What revenue related factor is this restaurant manager seeking to positively influence? - ANS-
Capacity
