Show me the steps to solve:

You will use Excel in this project.

Pirate Properties is a chain of extended stay hotel properties. The chain has $15$ properties with an average of $200$ rooms in each property. In $2022,$ the occupancy rate $($number of rooms filled divided by the number of rooms available$)$ was $70$ percent, based on a $365-$day year. The average room rate was $$180$ for a night.

The operating income for $2022$ is as follows:

Pirate Properties

Income Statement

$2022$

Sales Revenue:

Lodging $$137,970,000$

Food & beverage $19,929,000$

Miscellaneous $9,198,000$

Total Revenues $$167,097,000$

Costs:

Labor $ $44,325,000$

Food & Beverage $14,563,500$

Miscellaneous $8,431,500$

Management $2,800,000$

Utilities $40,500,000$

Depreciation $9,750,000$

Marketing $26,500,000$

Other Costs $8,000,000$

Total Costs $ $154,870,000$

Operating Profit $ $12,227,000$

In $2022,$ the average fixed labor cost was $$400,000$ per property. The remaining labor cost was variable with respect to the number of nights. Food and beverage cost and miscellaneous cost are all variable with respect to the number of nights. Utilities and depreciation are fixed for each property. The remaining costs $($management$,$ marketing, and other costs$)$ are fixed for the firm.

At the beginning of $2023,$ Pirate Properties will open four new properties with no change in the average number of rooms per property. The occupancy rate is expected to remain at $70$ percent. Management has made the following additional assumptions for $2023$:

$$ The average room rate will increase by $5$ percent.

$$ Food and beverage revenues per night are expected to decline by $20$ percent with no change in the cost.

$$ The labor cost $($both the fixed per property and variable portion$)$ is not expected to change.

$$ The miscellaneous cost for the room is expected to increase by $25$ percent, with no change in the miscellaneous revenues per room.

$$ Utilities and depreciation costs $($per property$)$ are forecast to remain unchanged.

$$ Management costs will increase by $8$ percent, and marketing costs will increase by $10$ percent.

$$ Other costs are not expected to change.

Required:

$1)$ Prepare a budgeted income statement for $2023$ in Excel. Each cell should show your calculations.

$2)$ Management wants to also look at what will happen in $2023$ if they raise the price to $$210$ a night. Management assumes that if they raise the price then they estimate that the occupancy rate will drop to $60\%.$ Prepare a budgeted income statement under this $$high price$$ strategy in Excel. Each cell should show your calculations. All other estimates $($cost per night, property costs, etc.$)$ will remain the same as in requirement $1.$

$3)$ Management wants to also look at what will happen in $2023$ if they lower the rate to $$170.$ At this rate they assume the occupancy rate will increase to $80\%.$ Prepare a budgeted income statement under this $$high occupancy$$ strategy in Excel. Each cell should show your calculations. All other estimates $($costs per night, property costs, etc.$)$ will remain the same as in requirement $1.$

$4)$ All three income statements should be on the same excel spreadsheet just in $3$ different columns.