Online Project - Gross Margin Income Statement Please create an annual income statement in the gross margin format for Lindsay's Legacy Cottages, a 25-cottage bed and breakfast mini resort located at the Benziger Family Winery. The B&B operates year round, and they are open 365 days per year. Each room has two people staying in the room. There are 5 total sources of revenue and 5 sources of cost of goods sold. The property's rack rate is $300 with a yield of 80%. Their annual occupancy rate is 82%, and the cost of sales for room revenue is 5% of room revenue. Information on the various sources of additional revenues is as follows: Food and beverage revenue is calculated using $12 per person avg. guest check for food and $8 per person for beverages based on 2 people per room each occupied room night. (Hint: determine the total number of annual occupied room nights and multiply that by 2 to get the total number of people dining for the year). Cost of sales for food is 40% and for beverages it is 20%. Wine tasting tours bring in 25% of room revenue (on top of the room revenues- add it as its own source of revenue) with a 10% cost of sales. Retail wine by the bottle drives another $200,000 annually (on top of room revenue and on top of wine tasting - add it as another revenue source) with a 20% cost of sales. Other expenses are salaries at $450,000 and wages at $250,000 per year plus marketing (10% of total sales) and depreciation ($900,000 per year) and other administrative costs running $75,000 per year. Create your income statement with a revenue section, cost of goods sold section, and expenses section. Remember to include a gross margin sub total. Conclude with a line for operating income. INCOME STATEMENT Revenue After you create the income statement, answer these questions: a) What is ADR 300 .8=240 b) What is the overall cost of goods sold (all cgs combined divided by all sales combined) in terms of a percentage? 270,461/2,744,050 = 9.86% c) What is the gross margin percentage? 2,473,589/2,744,050=90.14% d) If occupancy declined to 70%, what would be the decline in annual room revenues? 2,744,050-1,533,000 = $1,211,050 e) What is the operating income percentage? 434,184 /2,744,050 =15.82%