This case is a continuation of the Burburr Resorts & Hotels Corporation serial case that began in Chapter 1. The components of the Burburr serial case can be completed in any order. Burburr Resorts & Hotels Corporation is a fictitious corporation.

The Las Vegas Burburr will use budgets to make its financial plans. Let’s assume that Burburr prepares budgets for each of its hotel towers, including the new Blue Tower. Here is a list of budgeting assumptions for the Blue Tower for 2023:

Requirement:

1. How many Blue Tower hotel room nights should be budgeted to be booked in 2023?
2. What would be the budgeted net revenue from the Blue Tower hotel rooms in 2023?
3. What would be the budgeted variable costs for the Blue Tower hotel in 2023?
4. Prepare a budget for 2023 for the Blue Tower using the assumptions provided above and the numbers you have calculated. Does it appear that the Blue Tower will be generating a healthy amount of income for the Las Vegas Burburr? Explain.

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Data table for Blue Tower budget assumptions Number of hotel rooms in the Blue Tower 587 Average occupancy rate for Burburr Resorts & Hotels Corporation 91.2% Average hotel room rate per night $ 149 Total budgeted fixed costs for the Blue Tower $2,390,000 Variable cost per Blue Tower room night $ 27