Year 1 Year 2 Gross Room Rate $245.00 Direct Costs (35% of GRR) $85.75 Net Room Rate $159.25 Expenses-(Fixed)

Year 1 Year 2 Gross Room Rate $245.00 Direct Costs (35% of GRR) $85.75 Net Room Rate $159.25 Expenses-(Fixed) $60.00 Net Profit $99.25 Profit Margin 40.51% a. Determine the Profit Margin if the Gross Room Rate increases by 15% in year 2. b. In dollar and percentage terms, how much did Net Profit increase in year 2? c. In relative term (% increase), how much did profit margin increase in year 2? d. What would the Gross Room Rate need to be if a Profit Margin of 50% is required? e. What is the relationship between the change in Gross Room Rate and the change in Profit Margin?