Use the following data, some of which may be helpful and some of which may be useless, to compute the building cost rule-of-thumb formula:The hotel has 400 rooms. Income from all operating departments is $3,200,000 annually. Cost of land is $4,000,000. Cost of the building is $32,000,000. Cost of bank funds is 12% annually. Occupancy for next year is projected to be 72%.

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The building cost rule-of-thumb formula is typically calculated as the cost of the building divided by the number of rooms. Here, $32,000,000 / 400 rooms = $80,000 per room. However, the question asks for a cost per room per night, which is typically calculated by dividing the annual cost by the number of room nights available (400 rooms * 365 days). This results in $32,000,000 / (400 * 365) = $219.18 per room per night. However, considering the occupancy rate of 72%, the effective cost per occupied room per night is $219.18 * 0.72 = $157.81. None of the options match this exactly, but $90.00 is the closest reasonable estimate when considering typical rule-of-thumb adjustments.

Use the Following Data, Some of Which May Be Helpful