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HomeSuites is a chain of all-suite, extended-stay 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 all-suite, extended-stay 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 filled divided by the number of rooms available) was 70 percent, based on a 365-day year. The average room rate was $214 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 $218,705,000 Food & beverage 34,743,000 Miscellaneous 10,220.000 Total revenues 5263,676,000 Costs Labor 5 64,550,000 Food & beverage 18, 396,000 Miscellaneous 12, 264,000 Management 2.517.000 utilities, etc 48,000,000 Depreciation 10,500,000 Marketing 18,150,000 Other costs 4.015.00 Total costs $1232920 Operating profit $ 85,284,000 In year 1, the average fixed labor cost was $417,000 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 fixed for each property. The remaining costs (management, marketing, and other costs) are fixed for the firm At the beginning of year 2 Home Suites will open four 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 fixed per property and variable portion) is 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 Utilities 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. (Round your per unit average cost calculations to 2 decimal places.) HOMESUITES Operating Income Year 2 Sales revenue Lodging Food & beverage Miscellaneous Total revenues $ 0 Costs Labor Food & beverage Miscellaneous Management Utilities, etc Depreciation Marketing Other costs Total costs Operating profit $ 0 GA 0

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