[SOLVED] Kristin Helmud is the general manager of

Kristin Helmud is the general manager of Highland Inn, a local mid-priced hotel with 100 rooms. Her job objectives include providing resourceful and friendly service to the hotelâ€™s guests, maintaining an 80% occupancy rate, improving the average rate received per room to $88 from the current $85, achieving a savings of 5% on all hotel costs, and reducing energy use by 10% by carefully managing the use of heating and air conditioning in unused rooms and by carefully managing the onsite laundry facility, among other means. The hotelâ€™s owner, a partnership of seven people who own several hotels in the region, wants to structure Kristinâ€™s future compensation to objectively reward her for achieving these goals. In the past, she has been paid an annual salary of $72,000 with no incentive pay. The incentive plan the partners developed has each of the goals weighted as follows:

If Kristin achieves all of these goals, the partners determined that her performance should merit a bonus of $30,000. The partners also agree that her salary will need to be reduced to $60,000 because of the addition of the bonus. The goal measures used to compensate Kristin are as follows:

Kristinâ€™s new compensation plan will thus pay her a $60,000 salary plus 20.55 cents per room- Night sold plus $1,800 for each percentage point saved in the expense budget plus $30 for each cent increase in the average room rate plus $600 for each percentage point saved in energy use. The minimum potential compensation would be $60,000 and the maximum potential compensation for Kristin would be $60,000 + $30,000 = $90,000. Required: 1. Based on this plan, compute Kristinâ€™s total compensation if her performance results are: a. 30,000 room-nights, 5% saved, $3.00 rate increase, and 8% reduction in energy use. b. 25,000 room-nights, 3% saved, $1.15 rate increase, and 5% reduction in energy use. c. 28,000 room-nights, 0% saved, $1.00 rate increase, and 2% reduction in energy use. 2. Comment on the expected effectiveness of this plan (including sustainability). In what way, if at all, would you change the compensation weights?

Question: Kristin Helmud is the general manager of