Part 1. A manufacturer's absorption cost per unit is \(\$ 60\). Compute the target selling price per unit if a \(30 \%\) markup is targeted.

Part 2. A hotel normally rents its 200 luxury suites at a rate of \(\$ 500\) per night per suite. The hotel's cost per night per suite is \(\$ 400\), shown below.

The hotel's manager has received an offer to reserve a block of 40 suites for \(\$ 250\) per suite for one night during the hotel's offseason, when it has many available suites. Should the offer be accepted or rejected? What is the contribution margin from accepting the offer?

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Variable costs...... Fixed costs. Total cost per night per suite. $160 240 $400