1. The following information is taken from Sunshine Resort and inn regarding operations next year. The resort has 350 rooms, and expects to run an average occupancy of 85% for next year, assume a 365-day year. The resort's owners have invested $4.5 million for an expansion of conference facilities and want an after tax return of 20% on their investment. The hotel operates in the 35% tax bracket. The following expenses are expected for next year. Wages and salaries are $2.5 million Administrative expenses are $1 million Marketing expenses are $950,000, Equipment and supplies is $1.5 million The resort has two loans, the first is for $2.5 million at an interest rate of 9%, and the second is a $900,000 loan at an interest rate of 15%. Other operating expenses are expected to be 20% of total expenses. The income from telephone is expected to be $500,000. The resort carries three types of rooms, single, double and suites. Of the rooms occupied 20% are expected to be single, and 30% are expected to be suites. The owners have asked the Manager to ensure that there is a 25% difference between single and double and a $80.00 difference between double and suites. a. Calculate the average room rate for Sunshine resort or next year? b. What price should they sell single, double and suites to cover all expenses for next year