HomeSuites is a chain of all-suite, extended-stay hotel properties. The chain has 15 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 60 percent, based on a 365-day year. The average room rate was $205 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 Food & beverage Miscellaneous $138,080,000 17,082,000 9,855,000 $165,017,000 Total revenues Costs Labor Food & beverage Miscellaneous Management Utilities, etc Depreciation Marketing Other costs $ 42,300,000 13,140,000 9,855,000 2,511,000 37,500,000 11,250,000 25,110,000 8,011.000 Total costs Operating profit 15,340,000 In year 1, the average fixed labor cost was $411,000 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