1. Calculate the budgeted nights booked: Maximum capacity (30 rooms) * Number of days per year (365) * Expected occupancy rate (80%) = 8760 nights. 2. Calculate the tariff revenues: Budgeted nights booked (8760) * Tariff per room per night ($120) = $1,051,200. 3. Calculate the variable costs: Room servicing labour ($20 per night) * Budgeted nights booked (8760) = $175,200. Room servicing supplies ($5 per night) * Budgeted nights booked (8760) = $43,800. Total variable costs = $219,000. 4. Calculate the gross profit: Tariff revenues ($1,051,200) - Variable costs ($219,000) = $832,200. 5. Calculate the fixed costs: Admin/reception salaries (3 people * $60,000) + Grounds & maintenance salaries (2 people * $50,000) + General manager salary ($85,000) + Utilities ($90,000) + Depreciation of equipment ($140,000) = $595,000. 6. Calculate the net profit before tax: Gross profit ($832,200) - Fixed What recommendations would you communicate to management given these results