1. The following information is taken from Marell Beach Resort regarding operations next year. The resort has 300 rooms, and expects to run an average occupancy of 85% for next year, assume a 365 day year. The resort's two owners Deborah and Kyle have invested $4 million for an expansion of 75 suites and want an after tax return of 15% on their investment. The hotel operates in the 30% tax bracket. The following expenses are expected for next year. Wages and salaries are $1 million, administrative expenses are $900,000, marketing expenses are $700,000, equipment and supplies are $1 million. The resort has two loans, the first is for $1.5 million at an interest rate of 9%, and the second is a $930,000 loan at an interest rate of 12%. Other operating expenses are expected to be 15% of total expenses. The income from vending machines is expected to be $400,000. The resort carries three types of rooms, single, double and suites. Of the rooms occupied 20% are expected to be single, and 20% are expected to be suites. The owners have asked the Manager Catlin Santigo, to ensure that there is a 20% difference between single and double and a $60.00 difference between double and suites. a. Calculate the average room rate for Marell resort or next year? b. What price should they sell single, double and suites to cover all expenses for next year? 2. The following information is taken from the 250 seat Brettabrina restaurant for next year. The owner Randolph Book has invested $2 million in renovations and wants a 20% return on his investment. The restaurant is in the 30% tax bracket. Assume 313 days open. The restaurant is open for lunch and dinner and expects a seat turnover of 2.5 for lunch and 1.5 for dinner. The manager Jay Lee expects the following expenses for next year. The restaurant has to service two loans, the first is a 15% interest on outstanding balance of $1.2 million, and the second is a 12% interest on outstanding balance of $890,000. Wages are expected to be $600,000, fixed charges are expected to be $560,000, food cost is expected at $870,000 and other operating expenses are at 25%. The manager after review expects 30% of profits to come from lunch and 70% to come from dinner. a. Calculate the average meal price that Brettabrina restaurant must charge its customers. b. Find out what must the average check for lunch and dinner be to cover all cost for next year