Hotel Room Occupancy Revenue Maximization

XAT 2025 · Quantitative Ability & Data Interpretation · Medium · Arithmetic

There are 25 rooms in a hotel. Each room can accommodate at the most three people. For each room, the single occupancy charge is Rs. 2000 per day, the double occupancy charge is Rs. 3000 per day, and the triple occupancy charge is Rs. 3500 per day.

If there are 55 people staying in the hotel today, what is the maximum possible revenue from room occupancy charges today?

  1. A.

    Rs. 72500

  2. B.

    Rs. 82500

  3. C.

    Rs. 77500

  4. D.

    Rs. 92500

  5. E.

    Rs. 87500

Answer

C

Explanation

Let x,y,zx, y, z be the number of single, double, and triple occupancy rooms used, respectively. We are given:

  1. x+y+z=25x + y + z = 25
  2. x+2y+3z=55x + 2y + 3z = 55

Subtracting (1) from (2): y+2z=30  ⟹  y=30−2zy + 2z = 30 \implies y = 30 - 2z

Since x+y+z=25  ⟹  x+(30−2z)+z=25  ⟹  x=z−5x + y + z = 25 \implies x + (30 - 2z) + z = 25 \implies x = z - 5. For x≥0x \ge 0, we must have z≥5z \ge 5.

To maximize revenue R=2000x+3000y+3500zR = 2000x + 3000y + 3500z: R=2000(z−5)+3000(30−2z)+3500z=2000z−10000+90000−6000z+3500z=80000−500zR = 2000(z - 5) + 3000(30 - 2z) + 3500z = 2000z - 10000 + 90000 - 6000z + 3500z = 80000 - 500z To maximize RR, we need the minimum possible integer z≥5z \ge 5, which is z=5z = 5. Then x=0x = 0 and y=20y = 20.

Maximum Revenue = 2000(0)+3000(20)+3500(5)=60000+17500=77,5002000(0) + 3000(20) + 3500(5) = 60000 + 17500 = 77,500.

Related Arithmetic questions

Practise this under exam conditions

Sign in to solve it with a live timer, the on-screen CAT calculator, and streak and accuracy tracking across every question you attempt.

Solve in the workspace