HomeSuites is a chain of all-suite, extended-stay hotel properties. The chain has 22 properties with an average of 150 rooms in each property. In year 1, the occupancy rate (the number of rooms filled divided by the number of rooms available was 80 percent based on a 365-day year. The average room rate was $215 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 $207, 174,000 Food & beverage 26,980,800 Miscellaneous 14,454,000 Total revenues $248,608,000 Costs Labor $57,376,000 Food & beverage 23, 126,400 Miscellaneous 16,381,200 Management 2,518,000 Utilities, etc. 14,000,000 Depreciation 11,000,000 Marketing 15,400,000 Other costs 5,000,000 Total costs $174,801, 600 Operating profit $ 73,807,200 In year 1, the average fixed labor cost was $418,000 per property. The remaining labor cost was variable with respect to the number of nichts. Food and beverage cost and miscellaneous cost are all variable with respect to the number of nichts Utilities and depreciation In year 1, the average fixed labor cost was $418,000 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, HomeSuites will open two new properties with no change in the average number of rooms per property The occupancy rate is expected to remain at 80 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.) HOMESUITES Operating Income Year 2 5 of 6 Required: Prepare a budgeted income statement for year 2. (R& HOMESUITES Operating Income Year 2 Sales revenue Lodging Food & beverage Miscellaneous Total revenues Costs Labor Food & beverage Miscellaneous Management Utilities, etc. Depreciation Marketing Other costs Total costs Operating profit