Hotel Room 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 have x+y+z=25x + y + z = 25 and x+2y+3z=55x + 2y + 3z = 55. Subtracting the first equation from the second gives y+2z=30y + 2z = 30, so y=30−2zy = 30 - 2z. Substituting into x+y+z=25x + y + z = 25 gives x+(30−2z)+z=25  ⟹  x=z−5x + (30 - 2z) + z = 25 \implies x = z - 5. Since 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 to minimize zz. The minimum non-negative value for zz such that x≥0x \ge 0 is z=5z = 5. Then x=0x = 0 and y=30−2(5)=20y = 30 - 2(5) = 20. Maximum Revenue = 20×3000+5×3500=60000+17500=Rs. 77,50020 \times 3000 + 5 \times 3500 = 60000 + 17500 = \text{Rs. } 77,500.

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