PB.2 As manager of a 80 room motel you must prepare an annual budget. Occupancy will be 72%, average room rate is $124, variable cost per room sold is $18 and annual fixed costs are $1,425,000. Prepare the operating forecast and income statement below.

Number of rooms

80

Occupancy

72%

Days open

365

Average rate

$124.00

Variable cost/room

$18.00

Annual fixed cost

Annual rooms sold
Revenue
Variable cost
Fixed cost
Operating income

$1,425,000