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CBS 1 _ Exercise 19-17 (Algo) Analyzing a special offer for a service company LO P3 Grand Garden is a hotel with 100 suites. Its

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CBS 1 _ Exercise 19-17 (Algo) Analyzing a special offer for a service company LO P3 Grand Garden is a hotel with 100 suites. Its regular suite price is $240 per night per suite. The hotel's total cost per night is $170 per suite and consists of the following. Variable cost $ 130 Fixed cost __40 Total cost per night per suite 5 170 The hotel manager receives an offer to hold the local Bikers' Club meeting at the hotel in March, which is the hotel's slow season with a low occupancy rate per night. The Bikers' Club would reserve 70 suites for one night ifthe hotel accepts a price of $138 per night. (a) What is the contribution margin from this special offer? (b) Should the Bikers' Club offer be accepted or rejected? : Revenues from special offer Should the Bikers Club offer be accepted or rejected? E

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