Question:
A motel has 30 units. During the month of June, its average room rate is expected to be $90, and its room occupancy 75 percent. In July the owner is planning to raise room rates by 10 percent, and occupancy is expected to be 80 percent. In August no further room rate raises are contemplated, but occupancy is expected to be up to 90 percent. For each of the three months of June, July, and August, calculate the budgeted rooms revenue.