HomeSuites is a chain of all-suite, extended-stay hotel properties. The chain has 24 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 80 percent, based on a 365-day year. The average room rate was $220 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	$	308,352,000
Food & beverage		29,433,600
Miscellaneous		14,016,000
Total revenues	$	351,801,600
Costs
Labor	$	66,144,000
Food & beverage		21,024,000
Miscellaneous		14,016,000
Management		2,520,000
Utilities, etc.		38,400,000
Depreciation		12,000,000
Marketing		14,000,000
Other costs		7,000,000
Total costs	$	175,104,000
Operating profit	$	176,697,600

In year 1, the average fixed labor cost was $420,000 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 four 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 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	$
Costs
Labor
Food & beverage
Miscellaneous
Management
Utilities, etc.
Depreciation
Marketing
Other costs
Total costs	$
Operating profit	$