REQUIRED:Compute the rent to be charged for each type of suite at the Bougainvillea Hotels and Resorts.[20 Marks]

QUESTION 3 (20 MARKS) The Bougainvillea Hotels and Resorts has three types of suites for its customers: premier, deluxe and studio. Each room is designed with luxury and comfort in mind. Nestled within a limestone hills and features a combination of natural caves, pristine jungle, waterfalls and geothermal hot springs, Bougainvillea Hotel and Resort is a popular tourist destination. Due to the spike in COVID-19 cases around the world, the income of Bougainvillea Hotels and Resorts is dropping. With little means of generating revenues, the cost-management measures is crucial for Bougainvillea Hotels and Resorts to stay afloat. Hence, the General Manager has directed a costing department to run a thorough investigation. After a careful perusal of the limited available information, the team has come out with the following information: Premier Deluxe Studio Number of suites 40 60 100 Occupancy rate: Peak season 60% 80% 90% Off-peak season 20% 20% 50% Room attendant's wages when occupied (RM): Peak season 12.00 8.00 4.00 Off-peak season 6.00 4.00 2.00 Lighting, heating and power for a month, when occupied (RM) Peak season 80.00 60.00 40.00 Off-peak season 60.00 30.00 20.00 Additional information is as follows: The rent of deluxe suite is to be fixed at 11/2 times of the studio-room suite, whereas the premier room is charged twice the studio-room suite. Peak season may be assumed for 7 months and off-peak season for 5 months in a year. A month may be taken as 30 days. Profit including interest on investment @ 25% on cost. Other annual expenses are as follows: RM Staff salaries 220,000.00 Repairs and renovation 42,000.00 Linen etc. 45,000.00 Interior decoration 50,000.00 Sundries 31,600.00 Depreciation: Building @ 5% on RM15,000,000.00 Furniture & Fixtures @10% on RM1,000,000.00 Air-conditioner @ 10% on RM2,500,000.00