Read the Serial Case: Assume you work in the accounting department of Caesars Entertainment and your supervisor, Logan Lacy, asked you the questions presented under Requirements of the case (C7-79).

Perform the necessary analysis and formulate your opinions to answer questions in the case. Write a memo to Logan Lacy providing your answers/opinion with supporting details and example

Picture of work is fine please. Please submit a Word file with your memo and an Excel file with your analysis. When submitting, please attach the Word file first followed by the Excel file.

Your analysis must be prepared in Excel with your work clearly labeled. Please use Excel capabilities (e.g., formulas) to calculate numbers dont just type the answers. Memo should be in paragraph format.

Caesars Palace Las Vegas made headlines when it undertook a $75million renovation. During the renovation, the hotel closed its then named Roman Tower, which was last updated 14 years prior, and started a major renovation of the 567 rooms housed in that tower. On January 1,2016, the newly renamed Julius Tower reopened, replacing the Roman Tower. In addition to renovating the existing rooms and suites in the former Roman Tower, 20 guests rooms were added to the Roman Tower. With the renovation completed, Caesar expects the Julius Tower room rate to average around $149 per night. This increases, a $25 or 20.2% increase reflects, in part, the room improvements.

Assume the annual fixed operating costs for the Julius Tower in Caesars Palace Las Vegas are $5,000,000. This amount represents an increase of $200,000 per year compared to pre-renovation. Also assume that the variable costs per hotel room night after the renovation is $27; before the renovation, the variable cost per room night was $20.

Assume the hotel occupancy rate for Caesars Entertainment Corporations is 92% and that the average hotel occupancy rate in Las Vegas overall is 88%.

Requirements: 1) What cost types, associated with a hotel room in the Julius Tower, are variable with respect to hotel room occupancy? What cost types are fixed with respect to hotel occupancy? 2) Before the renovation, how many hotel room nights were needed to break even in the original Roman Tower (now Julius Tower)?Using Caesars occupancy rate, what was the margin of safety in units before the renovation? What is the margin of safety in units if the Las Vegas hotel occupancy rate is used instead of Caesars occupancy rate? 3) After the renovation, how many hotel room nights are needed to break even in the Julius Tower? Using Caesars occupancy rate, what is the margin of safety in units after the renovation? What is the margin of safety in units if the Las Vegas hotel occupancy rate is used instead of Caesars occupancy rate? Which hotel occupancy rate estimate is more appropriate in this case? Why?