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Grand Garden is a hotel with 150 suites. Its regular suite price is $250 per night per suite. The hotel's total cost per night is

Grand Garden is a hotel with 150 suites. Its regular suite price is $250 per night per suite. The hotel's total cost per night is $140 per suite and consists of the following.

Variable cost $ 110
Fixed cost 30
Total cost per night per suite $ 140

The hotel manager receives an offer to hold the local Bikers Club meeting at the hotel in March, which is the hotels slow season with a low occupancy rate per night. The Bikers Club would reserve 150 suites for one night if the hotel accepts a price of $125 per night. (a) What is the contribution margin, revenues, and variable costs from this special offer?

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