- Callie’s Canine Cottage has 45 kennels for boarding dogs. During June, July, August, November and December, each of the kennels is booked. During these months, Callie’s always charges its regular price of $15 per day per kennel. When business is slow, Callie’s sometimes charges a discounted rate of $13 per day per kennel for the first 25 kennels booked and $15 for the rest. On September 15th, Callie’s filled 25 kennels at $13 per day and 10 kennels at $15 per day. Calculate Callie’s yield for September 15th.*
- List AND discuss the challenges and risks in using yield management?
* You MUST show your work (i.e., your calculations). Simply stating the answer will only get 1/2 credit if correct and no credit if incorrect. (if I can see your calculations and your logic is correct, but math is wrong you can earn partial credit).
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