Tranquil Hotel is the world's largest budget hotel chain found in 1972. It now has more than 94,000 rooms in more than 2,000 locations (average is 48 rooms) in the United States and Canada. Suppose a particular Tranquil Hotel has annual fixed costs of $1,100,000 for its 110-room hotel, average daily room rents of $51, and average variable costs of $11 for each room rented. It operates 365 days per year. Requirements 1. How much net income on rooms will Tranquil Hotel generate (a) if the hotel is completely full throughout the entire year and (b) if the hotel is half full? 2. Compute the break-even point in number of rooms rented. What percentage occupancy for the year is needed to break even? Requirement 1. How much net income on rooms will Tranquil Hotel generate (a) if the hotel is completely full throughout the entire year and (b) if the hotel is half full? Begin by determining the formula to calculate net income (loss), then calculate how much net income will be generated for (a) if the hotel is completely full throughout the entire year and (b) if the hotel is half full. (Use parentheses or a minus sign for net losses.) 100% Full 50% Full Net income (loss) Requirement 2. Compute the break-even point in number of rooms rented. What percentage occupancy for the year is needed to break even? Break even # of rooms