Q.1 The Hubbart Room Rate Formula Operating Expenses 2,000,800 Taxes and Insurance 400,000 Depreciation 350,750 Reasonable ROA 900,000 Total Less Income from other sources Amount needed from room sales $ Revenue from room sales needed $ Number of rooms available (Per Day) 275 Rooms available per year (item 2x 365) 25%) Less allowance for vacancies (@ Number of rooms to be sold (@75%) ADR per room to get ROA (item1/item5) $ 340,000