Use the following to answer questions 1 and 2:

The Sunrise Hotel has 200 rooms. Each room rents at $110 per night and variable costs total $16 per room per night of occupancy. Fixed costs total $84,000 per month.

1.	If the hotel spends an additional $10,000 in the month of February on advertising they feel that they can expect occupancy rate to increase by 5%. What would be the financial impact of spending this additional money on advertising for the month of February (28 days)?

2.	If 80% of the rooms are occupied each night in the month of February (28 days) what will total costs be for the month?
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