A motel operation has 120 rooms. The previous year of operations reported an occupancy rate...
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A motel operation has 120 rooms. The previous year of operations reported an occupancy rate of 70 percent and the average room rate was $40.00. The owner is forecasting the occupancy rate to increase by 7 percent and the average room rate is to be increased by $5.00. Variable cost per room occupied is forecasted to be $8.50 per room. Determine the forecasted total sales revenue and total variable cost for the coming year of operations.
Total Sales Revenue: $____________ Total Variable Cost: $_____________
Total Sales Revenue: $1,517,670, Variable Cost per room: $286,671
Total Sales Revenue: $1,517,670, Variable Cost per room: $175,502
Total Sales Revenue: $1,458,540, Variable Cost per room: $275,502
Total Sales Revenue: $1,458,540, Variable Cost per room: $175,502
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