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HomeSuites is a chain of allsuite, extendedstay hotel properties. The chain has 20 properties with an average of 200 rooms in each property. In year

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HomeSuites is a chain of allsuite, extendedstay hotel properties. The chain has 20 properties with an average of 200 rooms in each property. In year 1, the occupancy rate (the number of rooms lled divided by the number of rooms available) was 70 percent, based on a 3657day year. The average room rate was $192 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 Year 1 Sales revenue Lodging $196,224,669 Food 3: beverage 24,528,669 Miscellaneous 12,264,698 Total revenues $233,916,669 Costs Labor $ 54,119,999 Food 3. beverage 15,336,698 Miscellaneous 19,226,699 Management 2,596,699 Utilities, etc. 49,999,999 Depreciation 19,996,696 Marketing 25,966,698 Other costs 8,996,688 Tcrtal costs $165,232,698 Operating profit $ 67,784,698 In year 1, the average xed labor cost was $406,000 per property. The remaining labor cost was variable with respect to the number of nights. Food and beverage cost and miscellaneous cost are all variable with respect to the number of nights. Utilities and depreciation are xed for each property. The remaining costs (management, marketing, and other costs) are xed for the firm. At the beginning of year 2, HomeSuites will open ve new properties with no change in the average number of rooms per property. The occupancy rate is expected to remain at 70 percent. Management has made the following additional assumptions for year 2. - The average room rate will increase by 5 percent. - Food and beverage revenues per night are expected to decline by 20 percent with no change in the cost. - The labor cost (both the fixed per property and variable portion) is not expected to change. - The miscellaneous cost for the room is expected to increase by 25 percent, with no change in the miscellaneous revenues per room. . Utilities and depreciation costs (per property) are forecast to remain unchanged. . Management costs will increase by 8 percent, and marketing costs will increase by 10 percent. - Other costs are not expected to change. Required: Prepare a budgeted income statement for year 2. [Round your per unit average cost calculations to 2 decimal places.) Sales revenue Food & beverage Miscellaneous Total revenues Costs Food & beverage Miscellaneous Management Utilitles, etc. Depreciation Marketing Other costs Total costs $ Operating prot $

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