Is 12,000 the answer for the first one? And is answer to the second one decreaes

Question

Is 12,000 the answer for the first one? And is answer to the second one decreaes by 5%?

LaVilla is a village in the Italian Alps. Given its enormous popularity among Swiss, German, Austrian, and Italian skiers, all of its beds are always booked in the winter season and there are, on average, 1, 200 skiers in the village. On average, skiers stay in LaVilla for 10 days. How many new skiers are arriving-on average-in LaVilla every day? A study done by the largest hotel in the village has shown that skiers spend on average $50 per person on the first day and $30 per person on each additional day in local restaurants. The study also forecasts that-due to increased hotel prices-the average length of stay for the 2003/2004 season will be reduced to five days. What will be the percentage change in revenues of local restaurants compared to last year (when skiers still stayed for 10 days)? Assume that hotels continue to be fully booked!

Explanation / Answer

Average number of people arriving in La Villa every day - 1200

Change in revenues

Reduction in revenues is proportional to reduction in number of days for which people arrive.

If 1200 people arrive each day, and stay for 5 days only, percentage change in revenue would be 50%

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