C9-73Calculate budgets after hotel renovation(Learning Objective 2) The C-Suite officers and I are still discussing the possibilities of another tower renovation. Previously, they had us look at Break-Even based on the Julius Tower. Now, they want us to look at potential profitability for a new tower. Please use the following budget information from the Julius Tower to estimate the To-Be-Named Tower's profitability.

Data table for Julius Tower budget assumptions
Number of hotel rooms in the Julius Tower	587
Average occupancy rate for Caesars Entertainment Corporation	91.2%
Average hotel room rate per night	$ 149
Total budgeted fixed costs for the Julius Tower	$ 2,390,000
Variable cost per Julius Tower room night	$ 27

Using the data provided, construct a budgeted Contribution Margin Income Statement for theTo-Be-NamedTower using information above in an Excel spreadsheet. Include percentages for contribution margin and net income. Use proper formatting and headings for the income statement and proper formatting and labels for the dollar figures and number columns.

I know the C-Suite execs are going to ask me the following questions:

How many hotel rooms should be budgeted to be booked for next year?

Does it appear that theTo-Be-NamedTowerwill be generating a healthy amount

of income for Caesars Palace Las Vegas? Explain.