# Problem 4 1. Room Sales: a) Average room price $50 b) Average daily occupancy-65% c) Available rooms per day- 50 2. Administrative and General Fixed Labor- $12,000/month 3. Variable Expenses (as a percentage of total room sales) a) Rooms labor-20% b) Rooms other expense-1090 c) Administrative and general other-3% d) Marketing-5% e) Maintenance-5% 4. Other Fixed Expenses a) Depreciation-$5,000/month b) Utilities-$3,000/month c) Insurance-$1,000/month d) Property taxes-$2,000 for the year e) Maintenance-$500/month 5. Income tax-20% (as a percentage of income before taxes) 6. Assume the property will be open 365 days of the year Prepare the annual income statement