Pirate Properties is a chain of extended stay hotel properties. The chain has 15 properties with an average of 200 rooms in each property. In 2022, the occupancy rate (number of rooms filled divided by the number of rooms available) was 70 percent, based on a 365-day year. The average room rate was $180 for a night. The operating income for 2022 is as follows: Sales Revenue: Pirate Properties Income Statement Lodging Food & beverage Miscellaneous Total Revenues Costs: 2022 $137,970,000 19,929,000 9.198.000 $167,097,000 40,500,000 Labor Food & Beverage Miscellaneous Management Utilities Depreciation Marketing Other Costs Total Costs Operating Profit $ 44,325,000 14,563,500 8,431,500 2,800,000 9,750,000 26,500,000 8.000.000 $154.870.000 $ 12.227.000 In 2022, the average fixed labor cost was $400,000 per property. The remaining labor cost was variable with respect to the number of nights. Food and beverage cost and miscellaneous cost are all variable with respect to the number of nights. Utilities and depreciation are fixed for each property. The remaining costs (management, marketing, and other costs) are fixed for the firm. At the beginning of 2023, Pirate Properties will open four new properties with no change in the average number of rooms per property. The occupancy rate is expected to remain at 70 percent. Management has made the following additional assumptions for 2023: ⚫ The average room rate will increase by 5 percent. ⚫ Food and beverage revenues per night are expected to decline by 20 percent with no change in the cost. ⚫ The labor cost (both the fixed per property and variable portion) is not expected to change. ⚫ The miscellaneous cost for the room is expected to increase by 25 percent, with no change in the miscellaneous revenues per room. Utilities and depreciation costs (per property) are forecast to remain unchanged. Management costs will increase by 8 percent, and marketing costs will increase by 10 percent. ⚫ Other costs are not expected to change. Required: 1) Prepare a budgeted income statement for 2023 in Excel. Each cell should show your calculations. 2) Management wants to also look at what will happen in 2023 if they raise the price to $210 a night. Management assumes that if they raise the price then they estimate that the occupancy rate will drop to 60%. Prepare a budgeted income statement under this "high price" strategy in Excel. Each cell should show your calculations. All other estimates (cost per night, property costs, etc.) will remain the same as in requirement 1. 3) Management wants to also look at what will happen in 2023 if they lower the rate to $170. At this rate they assume the occupancy rate will increase to 80%. Prepare a budgeted income statement under this "high occupancy" strategy in Excel. Each cell should show your calculations. All other estimates (costs per night, property costs, etc.) will remain the same as in requirement 1. 4) All three income statements should be on the same excel spreadsheet just in 3 different columns.