Section 1 - answer all questions 1. The following information is taken from Seashell Beach Resort regarding operations next year. The resort has 200 rooms, and expects to run an average occupancy of 80% for next year, assume a 365 day year. The resort's two owners Mark and Tyrell have invested $5.5 million and want an after tax return of 20% on their investment. The hotel operates in the 30% tax bracket. The following expenses are expected for next year. Wages and salaries are $2.5 million, administrative expenses are $1.6 million, marketing expenses are $800,000, equipment and supplies are $1.5 million. The resort has two loans, the first is for $1.5 million at an interest rate of 10%, and the second is a $950,000 loan at an interest rate of 10%. Other operating expenses are expected to be 20% of total expenses. The income from vending machines is expected to be $565,000. The resort carries three types of rooms, single, double and suites. Of the rooms occupied 30% are expected to be single, and 20% are expected to be suites. The owners have asked the Manager, to ensure that there is a 30% difference between single and double and an $70.00 difference between double and suites. a. Calculate the average room rate for Marell resort or next year? b. What price should they sell single, double and suites to cover all expenses for next year