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Exercive 1 (13 Points): Tree Top Hotel is preparing its budget for the next forr months of the year 20X1. The conpany has 150 rooms and a total capacity per month of 4,500 rooms and has provided the following information. Required: 2. The cost of goods sold is 40% of tevenacs. Prepare the cost of goods sold budgef for the months of Januarv. Februarv. March and Anril 20X1. 3. Tree Top Hoted had the following expenses ce December 20X0: The company will hire a new administrative assistant in Merch, which will increase the administrative expenses by $2,000 Salaries expense is therefote expected to increase by 10% each month The company will have a new advertising carmpaign beginning in Jamuary which will add $4,000 per month to seling expenses. The compary pays a fixed amsount of $12,000 per month for utlities, regardless of usage as per its ageement with its utiliy 3. Tree Top flotei had the following expenses on Deceniber 200 : by 32,000 . Salaries expense is therefore expected to increase by 10% each meeth Ihe campany will harve a prys a fived amoant of 512,000 per month for utitides, regar cless of usaice as per its a ternent apth ils thity 1. Prepare the operating incotag budiet for the months of January. February. March and Anail onx 1

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