Part A - 12 Marks Janice Long is considering building a budget hotel that offers clean small rooms with bathrooms. She anticipates that her 120 rooms will rent for 39,600 room-nights per year. The market price for equivalent rooms is $60 per night. Janice estimates that the capital cost will be $6,500,000 and she would like an annual return of 10%. Following are the estimated annual operating costs: Variable operating costs Fixed costs: Salaries and wages Building maintenance General administration Total fixed costs Required: a. What is the full cost per room-night? $ 21 per room night $420,000 89,000 280,000 $ 789,000 b. Can Janice meet the targeted return on investment based on the estimated costs and revenue? Show your calculations. c. A tour operator has offered $30 per night for 20 rooms during a time of the year that there is likely to be at least that many rooms vacant. Should Janice accept this offer? Show your calculations. Part B - 6 Marks The schedule below is the sales budget for five months ending September 2024 Month May 2024 June 2024 July 2024 August 2024 September 2024 Additional Information includes. Month Cash Sales $16,000 20,000 18,000 24,000 22,000 Credit Sales $68,000 80,000 74,000 92,000 76,000 Collections are 40% in the month of sale. 45% in the month following the sale, and 10% two months following the sale. The remaining 5% is expected to be uncollectible. Required: Prepare a schedule of cash collections for July through September.