FIXED CHARGES Rent 8,000 1.0% Property and Other Taxes 16,000 2.0% Insurance 8,000 1.0% Total Fixed Charges 32,000 4.0% NET OPERATING INCOME to 189,600 23.7% LESS: REPLACEMENT RESERVES 16,000 2.0% ADJUSTED NET OPERATING INCOME 173,600 21.7% a. What will be the amount of rooms department expense Randy should budget for next month? Answer: $168,000 b. What will be the amount of food and beverage department expense Randy should budget for next month? Answer: $150,000 c. What is the percentage amount of gross operating profit (GOP) Randy should anticipate for next month? Answer: 32.7% d. What will be the income before fixed charges that Randy anticipates for next month? Answer: 221,600 e. How much uncommitted cash could be available to the hotel's owners next month if Randy's achievement budget is accurate? Answer: 173,600