Question: A 181 room hotel forecasts its average room rate to be $125 for the next year with an 0.53 Occupancy rate. The hotel is open

  • A 181 room hotel forecasts its average room rate to be $125 for the next year with an 0.53 Occupancy rate.
  • The hotel is open 365 days a year.
  • The hotel department has a fixed wage cost with benefits of $242,007 per year.
  • General Variable costs are $7.82 per occupied room.
  • The variable wage cost for housekeeping employees is $19 per hour and it takes 1.04 hour(s) to clean a room.
  • The hotel has a 70 seat dining room.
  • The dining room is open 314 days of the year for two meals.
  • The dining room is only open for lunch and dinner.
  • Lunch seat turnover is 1.86 with an average check of $13.
  • Dinner seat turnover is 1.48 with an average check of $13.
  • Direct dining room operating costs are $308,665.
  • The dining room's indirect expenses are $103,498.

Calculate operating income:

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