• Assume you are working on budgeting for the room department of your hotel.
• Assume the hotels Room Revenue (Sales) was $1,640,000 during 2016. Based on the lodging forecast report, you expect the Room Revenue (Sales) to increase by 3.7% next year.
• Assume the Guest Supplies expenses (variable costs) from the room department was $250,000 during 2016. For 2017, this variable cost will remain at the same percentage of the Room Revenue (Sales) as experienced in 2016.
• Assume the Salaries expenses (fixed costs) from the room department was $280,000 during 2016. For 2017, this fixed cost will increase by 2% due to the expected increase in living expenses in this area.

1. What will be the budgeted Room Revenue (Sales) for 2017?

2. What will be the budgeted Guest Supplies expenses for 2017?

3. What will be the budgeted Salaries expenses for 2017?