Question - A motel operation has 120 rooms. The previous year of operations reported an occupancy rate of 70 percent and the average room rate was $40.00. The owner is forecasting the occupancy rate to increase by 4 percent and the average room rate is to be increased by $5.00. Variable cost per room occupied is forecasted to be $8.50 per room. Determine the forecasted total sales revenue and total variable cost for the coming year of operations.