A motel had the following annual sales revenue and average room rate figures for the last five years. During this five-year period, there were no changes in the number or type of rooms available, and the type of clientele remained the same.

Prepare index numbers from the average room rates. Use the index numbers identified to convert the annual sales revenue to current dollars. After the conversion is completed, comment on the results of your analysis.LO1

Transcribed Image Text:

Year 12345 Annual Sales Revenue Average Room Rate $2,205,952 $85.00 $2,254,695 $88.60 $2,299,526 $89.70 $2,334,484 $91.40 $2,380,856 $93.80