Vernon Cabins Operating Income Year 1 Sales revenue Lodging $ 4,860,000 Incidentals 475,200 Forfeited deposits 129,600 Total revenues $ 5,464,800 Costs Labor $ 1,748,000 Incidentals 451,200 Miscellaneous 86,400 Utilities, etc. 95,000 Depreciation 550,000 Management 120,000 Marketing 230,000 Property taxes 1,640,000 Total costs $ 4,920,600 Operating profit $ 544,200