Question

Surveys reveal that the vast majority of hotel guests in the United States resent the high prices of the items in the mini-bars in their hotel rooms. These guests would prefer to have an empty refrigerator in their rooms in order to have space to put their own food and beverages, although a large percentage of these guests would still make at least one purchase from their in-room mini-bar. After analyzing the results of the study, the management of Hotel T decided that it would be more profitable to eliminate the mini-bar and install empty refrigerators in each room.

Which of the following, if true, would support Hotel T's plan to increase profitability by eliminating in room mini-bars in favor of empty refrigerators?

• A. There is currently some space available in Hotel T's in-room mini-bars for guests to put their own items.
• B. Hotel T is located in the United States.
• C. Some guests of Hotel T do not make any purchases from their in-room mini-bars.
• D. The money that Hotel T makes from the mini-bar purchases of its guests is less than the money that Hotel T loses from discarding mini-bar items that have not sold by their expiration dates.
• E. It will cost Hotel T less money to maintain empty refrigerators in its guest rooms than to maintain stocked mini-bars in those rooms.

Answer 1

The correct option is E It will cost Hotel T less money to maintain empty refrigerators in its guest rooms than to maintain stocked mini-bars in those rooms.

A) There is currently some space available in Hotel T’s in-room mini-bars for guests to put their own items. Out of scope
B) Hotel T is located in the United States. Not relevant
C) Some guests of Hotel T do not make any purchases from their in-room mini-bars. Not relevant
D) The money that Hotel T makes from the mini-bar purchases of its guests is less than the
money that Hotel T loses from discarding mini-bar items that have not sold by their expiration dates. Relevant
E) It will cost Hotel T less money to maintain empty refrigerators in its guest rooms than to
maintain stocked mini-bars in those rooms. Relevant

While option (E) is true, in the premise manager does take into account the 1 item sold. Thus D is a better choice.