Operating budgets: labor hiring plan Strathfield Motel is planning its operations for the…

Operating budgets: labor hiring plan Strathfield Motel is planning its operations for the upcoming tourist season. The motel has 60 units. The following table presents the average number of daily rentals expected for each of the 12 weeks of the tourist season.
The motel hires housekeeping staff on a weekly basis. Each person can clean 15 rooms per day. Employees must be hired for the entire week at a wage of $400 per employee per week. Because of the motel’s location in a midsize city, trained people are always available to work on short notice.
The motel does not own its linen and towels but rents them from a rental agency in a nearby city. The rental contract must be signed for a 4-week period and for a fixed amount of linen and towels. Therefore, the motel must sign three contracts for the 12-week tourist season. The contract provides the linen required for each room for $3 per night.

Required

Prepare a weekly budget for the hotel showing the following:

(a) The number of housekeeping staff to employ

(b) The number of linen and towel units to contract.

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