Problem 2 Peter McCoy manages the McCoy Place, a 100-room limited-service hotel. He provides you with details for preparing the March 20X7 operating budget as follows: 80% | Expected paid occupancy percentage Double room occupancy room occupancy | | | 80% 20% Single | | Operations Budgeting 527 | ADR $100 Price of double rooms $10 more than singles Room revenue 95% of total revenue Other revenue 5% of total revenue | Room expenses: Fixed $5,000 Variable $8 per room sold Other expenses: | Variable (% of total revenue) Fixed | A&G 4% 4,000 Sales &marketing Property operation and maintenance Energy costs 1,000 5% 3,000 | 1,000 | Insurance 2,000 Property taxes Depreciation 2,000 | 2,500 1,800 Interest Income taxes = 25% of pretax income | Required: Based on the above financial and operating information, prepare the operating budget for March 20X7 | 221