11. Table 10.17 shows projected demand for a peak summer weekend day at Timber R

Question

11. Table 10.17 shows projected demand for a peak summer weekend day at Timber Ridge Golf Course. Golfers prefer to play in the middle of the day rather than very early or very late. Compare the effects of a standard pricing scheme of $50 per round with those of the adjusted pricing given in Table 10.17. a. The standard price is $50 per round regardless of the tee time. Calculate the total demand for the day and the revenue for this pricing scheme b. Assuming Timber Ridge changes its pricing for the rounds to the scheme shown in the fourth column of Table 10.17, calculate the total de- mand for the day and the revenue for this adjusted pricing scheme.

Explanation / Answer

a) Total Demand for the day = 6+30+8+7 = 51

Price of one round = $50

Therefore , revenue from 51 rounds = 51*50 = $ 2550

b) Total demand for the day = 10+20+9+14 = 53

Revenue from adjusted pricing = 10*35+20*60+9*50+14*45 = $2630

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