Income Statement for the Fiscal Year Ended 3/31

Revenues. $1,301,725

Expenses

General Manager Salary. $195,000

Housekeeping Supervisor Wages. $27,300

Desk Clerk Wages. $14,000

Housekeepers (4) Wages. $28,000

Payroll Taxes and Fringe Benefits $52,860

Depreciation (avg. 15-year life) $30,000

Property Taxes $48,000

Insurance $38,500

Repairs and Maintenance $223,652

Cleaning Supplies $24,960

Utilities $82,680

Linen Service $63,458

Interest on Mortgage $162,308

Miscellaneous $88,082

Total Expenses $1,078,800

Income before Income Taxes $222,925

Income Tax Expense $46,814

Net Income $176,111

Ski hotel only open for 20 weeks (140 days) The hotel building consists of a large central entrance area and two wings.

i.The South Wing has 40 rooms with an average room rate of $240 on Friday and Saturday, and of $160 on Sunday through Thursday.

ii.The West Wing has 35 rooms with an average room rate of $200 on Friday and Saturday, and of $140 on Sunday through Thursday.

iii.Both wings have an average occupancy of 100% on Friday and Saturday, and of 75% on Sunday through Thursday.

What is contribution margin and break even?