Question: As the manager of the 60-room motel, you have the responsibility of preparing next year's budget from the following information:
¦ Annual occupancy: 74%
¦ Average room rate: $84
¦ Variable costs per room occupied: $8
¦ Annual fixed costs: $825,000
Prepare the Motorway Motel's budget for next year. Assume a 365-day year.