A 120-room hotel forecasts its average room rate to be $82.00 for the next year with 75% occupancy rate. The rooms department fixed wage cost including benefits is $178,000 per year. The variable wage cost for housekeeping employees is $12.00 an hour and it takes half an hour to clean a room. Employee benefits for the housekeeping employees are 12% of wages. Linens, laundry supplies, and other variable costs are $8.50 per occupied room. The hotel also has a 60-seat dining room. Breakfast sales revenue is derived solely from overnight guests staying at the hotel. On average, one person occupies 40% of rooms occupied, and the remainder is double occupied. On average, 75% of overnight guests eat breakfast, with an average check of $10.25. Lunch seat turnover is 1.25 with an average check of $12.60. Dinner seat turnover is 0.75 with an average check of $16.50. The dining room is open 365 days a year for all three meals. Direct dining room operating costs (food, wages, supplies, and other items) are 70% of the dining room sales. Indirect costs (energy, A&G, marketing, and other items) are estimated at $800,000 for next year.

Create an operating budget of the hotel for next year