2) Cate Locke operates a bed and breakfast hotel in a resort area in the Smoky Mountains. Leasing costs on the hotel property is $60,000 per year. Cate employs one employee at a fixed annual salary of $41,000 and a second employee at a fixed annual salary of $24,000. Real estate taxes are $10,000 per year. The rooms rent at an average price of $60 per person per night including breakfast. Other costs are laundry and cleaning service at a cost of $10.00 per person per night and the cost of food which is $5.00 per person per night. Instructions (a) Determine the number of room rentals Cate needs to break even using the contribution margin technique. (b) Using the number you calculated in (a) above, determine the sales revenue (during a year) Cate needs to break even, remembering that the rooms rent at an average price of $60 per person per night. (c) Cate is considering upgrading the breakfast service to attract more business and increase prices. This will cost an additional $3.00 for food costs per person per night. Cate feels she can increase the room rate to $68 per person per night. Determine the number of room rentals Cate needs to break even if the changes are made. (d) Using the number you calculated in (c) above, determine the sales revenue (during a year) Cate needs to break even, again remembering that the rooms now rent at an average price of $68 per person per night.