HomeSuites is a chain of all-suite, extended-stay hotel properties. The chain has 22 properties with an average of 200 rooms in each property. In year 1, the occupancy rate (the number of rooms filled divided by the number of rooms available) was 70%, based on a 365-day year. The average room rate was $185 for a night. The basic unit of operation is the "night", which is one room occupied for one night. The operating income for year 1 is as follows: HOMESUITES Operating Income Sales Revenue Lodging Food & beverage Miscellaneous Total revenues Year 1 $207,977,000 30,353,400 13,490,400 251,820,800 Costs Labor Food & Beverage Miscellaneous Management Utilities, etc. Depreciation Marketing Other costs Total costs $ 65,186,000 22,484,000 15,738,800 2,508,000 46,200,000 10,450,000 Operating profit 14,520,000 2,000,000 179,086,800 $ 72,734,000