3 HomeSuites is a chain of all-suite, extended-stay hotel properties. The chain has 18 properties with an average of 220 rooms in each property. In year 1, the occupancy rate the number of rooms filled divided by the number of rooms available was 30 percent, based on & 365-dsy year. The average room rate was $185 for a night. The basic unit of operation is the night" which is one room occupied a for one night The operating income for year 1 is as follows. 25 points eBook Print HomeSuites Operating Income Year 1 Sales revenue Lodging $213,919,200 Food & beverage 32, 376,960 Miscellaneous 11,563,200 Total revenues $257,859,360 Costs Labor $ 72,097,920 Food & beverage 18,501,120 Miscellaneous 13,875,840 Management 2,583,220 Utilities, etc. 38,250,000 Depreciation 11,250.000 Marketing 14,250.000 Other costs 8.083.000 Total costs $178,650,830 Operating profit $ 79, 288,480 References In year 1. the average fixed labor cost was $403.000 per property. The remaining labor cost wes variable with respect to the number of nights. Food and beverage cost and miscellaneous cost are all variable with respect to the number of nights. Utilities and depreciation are fixed for each property. The remaining costs (menagement, marketing, and other costs) are fixed for the firm. At the beginning of year 2, HomeSuites will open two new properties with no change in the average number of rooms per property. The occupancy rate is expected to remain at 80 percent. Management has made the following additional assumptions for year 2 The average room rate will increase by 5 percent Food and beverage revenues per night are expected to decline by 20 percent with no change in the cost. The labor cost both the fixed per property and variable portion) is not expected to change. The miscellaneous cost for the room is expected to increase by 25 percent, with no change in the miscellaneous revenues per Utilities and depreciation costs (per property) ere forecast to remain unchanged. Management costs will increase by 8 percent, and marketing costs will increase by 10 percent Other costs are not expected to change. room Required: Prepare a budgeted income statement for year 2 (Round your per unit average cost calculations to 2 decimal places.) HOME SUITES Operating Income Year 2 Sales revenue Lodging Food & beverage Miscellaneous Talal revenus Casts Labar Food & beverage Miscellaneous Management Utilities, etc. Depreciation Marketing Other casts Total costs Operating profit