Homework Assignment 3 (Due 6/27, 11:59pm) 17 dos HomeSuites is a chain of all-suite, extended-stay hotel properties. The chain has 15 properties with an average of 210 rooms in each property In year 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 $190 for a night. The basic unit of operation is the night which is one room occupled for one night The operating income for year is as follows. Honduite Operating Income Year 1 Sales revenue Lodging $174.762,000 Food & beverage 29,433,600 Miscellaneous 10.117.800 Total revenues 5214,313,400 Costa Labor $ 61,263,000 Food & beverage 18,396,000 Miscellaneous 11.957,400 Management 2,505,000 Utilities, ete. 36,000,000 Depreciation 13,500,000 Marketing 10,000,000 Other costs 2.300.000 Total costs $156,121,400 Operating profit $ 58,192,000 Print 0 ce In year 1, the average fixed labor cost was $405,000 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 five 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. Ethan in aninha antatt Harlinn hu 7 narrant with no A In the act 17 www. Food and beverage revenues per night are expected to decline by 25 percent with no change in the cost The miscellaneous cost for the room is expected to increase by 30 percent, with no change in the miscellaneous revenues per 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 pot 600 Required: Prepare a budgeted income statement for year 2. (Round your per unit average cost calculations to 2 decimal places.) HOMESUITES Operating Income Year? Sales revenue Lodging Food & beverage Moscaneous To revenues 5 Coats Labor Food & beverage Miscellaneous Management Use Depreciation Marketing Other costs Total costs $ Operating profil $ 0 Me Hill GE