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Grand Garden is a hotel with 240 sultes. Its regular sulte price is $210 per night per suite. The hotel's total cost per night is
Grand Garden is a hotel with 240 sultes. Its regular sulte price is $210 per night per suite. The hotel's total cost per night is $150 per suite and consists of the following. Variable cost Fixed cost Total cost per night per suite $ 150 $ 110 40 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 220 sultes for one night if the hotel accepts a price of $118 per night. (a) What is the contribution margin from this special offer? (5) Should the Bikers' Club offer be accepted or rejected? S Answer is not complete. Contribution margin from Bikers' Club special offer: Revenues from special offer 25.960 Variable costs 12,100 % Contribution margin from this special offer Should the Bikers Club offer be accepted or rejected? accepted
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