Problem 13-60 (Algo) Prepare Budgeted Financial Statements: Comparing Alternatives (LO 13-6, 7) 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 1, 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 occupied for one night. The operating income for year 1 is as follows. HomeSuites Operating Income Year 1 Sales revenue Lodging Food & beverage Miscellaneous Total revenues Costs Labor Food & beverage Miscellaneous Management Utilities, etc. Depreciation Marketing Other costs. Total costs Operating profit $138,020,000 29,433,600 10,117,800 $177,571, 400 $ 61, 203,000 18,396,000 11,957,400 2,505,000 36,000,000 13,500,000 10,000,000 2,500,000 $156, 121, 400 $ 21,450,000 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