P3.14 A motel had the following annual sales and average room rate for the past five years. During this period there were no changes in the number or type of rooms and the clientele remained basically the same.
a. Compute Room Rate Index trend numbers using 100 as the base Room Rate Index for Year 1.
b. Using the given CPI data, convert the reported historic dollar revenue into current (2011) dollars.
	Revenue	Room Rate	Room Rate Index	CPI	Revenue in Current $
2007	$1,427,000	$85.00		207.34
2008	$1,540,000	$88.60		215.30
2009	$1,620,000	$89.70		214.54
2010	$1,320,000	$91.40		218.06
2011	$1,410,000	$93.80		224.94
Room Rate Index Formula:
Current Dollar Conversion Formula:
c. Please comment on the sales pattern.