Background Information Provided by Your Client: The Riverfront, a hotel in Savannah, Georgia. For the hotel, management expects occupancy rates to be 95% in December, January and February; 85% in November, March and April; and 70% the rest of the year. This hotel has 325 rooms and the room rental is $230.00 per night. Of this, on average 10% is received as a deposit the month before the stay, 60% is received in the month of the stay, and 28% is collected the month after. The remaining 2% is never collected. Most of the costs of running the hotel are fixed. The variable costs are only $30.00 per occupied room, per night. Fixed salaries (including benefits) run $400,000 per month, depreciation is $350,000 a month, other fixed costs are $125,000 per month, and interest expense is $500,000 per month. Variable costs and salaries are paid in the month they are incurred, depreciation is recorded at the end of each quarter, other fixed costs and salaries are paid in the month they are incurred, and interest is paid semi-annually each June and December. The client wants your accounting firm to prepare a traditional income statement (profit and loss statement) using the information above. 1. The client wants to know: How much would the hotel's annual profit increase if occupancy increased by 5 percentage points during the off-season (that is from 70% to 75%) in each month from May to October. 2. The client wants to know the contribution margin. 3. The client wants to know the break-even point for the hotel. You can use the Week 2 template for your work, since this the production of a second traditional budget with different data. You may also copy_your Week 2 budget and change only the indicated data. Don't forget to compute your contribution margin and break-even point