P9.11 You have been asked to help prepare the operating budget for a proposed new 100-room motel, with a 65-seat coffee shop, 75-seat dining room, and 90-seat cocktail lounge. The operating budget for the first year will be based on the following information:

Rooms Department Occupancy is 60 percent with an average room rate of $63. Fixed wages for bellpeople, front-office employees, and other personnel attached to the rooms department are estimated at $326,900. In addition, for every 15 rooms occupied each day, one housekeeper will be required for an eight-hour shift at a rate of $6.50 an hour. Staff fringe benefits will be 12 percent of total wages. Linen and laundry costs will be 6 percent of total rooms’ revenue. Supplies and other items will be 3 percent of total rooms’ sales revenue.