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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

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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 the occupancy rate the number of rooms filled divided by the number of rooms available was 70 percent, based on 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 is as follows. Operating the Bal revenue Lodging 1207.975,000 Food beverage 30,353,400 Milanes 13,400,400 Total revenue 5251,020,00 Coute be 365,186,000 Food & beverage 23,484.000 Miscellaneous 13.738.000 2.500.000 Utilities, wte. 46,200,000 Depreciation 10,450,000 Marketing 14.520,000 Other post 2,000,000 Total com $170.005.000 Operating profil 12.734,000 Management In year 1 the average foed labor cost was $408.000 per property. The remaining tabor 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 fled for each property. The remaining costs management, marketing, and other costs are feed for the firm. At the beginning of year 2. HomeSuites will open seven 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 10 percent Food and beverage revenues per night are expected to decline by 25 percent with no change in the cost The labor cost both the fed per property and variable portion not expected to change The miscellaneous cost for the room is expected to increase by 30 percent, with no change in the miscellaneous revenues per room. - Unities and depreciation costs (per property are forecast to remain unchanged. Management costs will increase by 5 percent, and marketing costs will increase by 5 percent. Other costs are not expected to change. Required: Prepare a budgeted Income statement for year 2. Ground your per unit wwwrage cost entertadans to 2 decimal places) Den

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