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Grand Garden is a hotel with 260 suites. Its regular suite price is $250 per night per sulte. The hotel's total cost per night is

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Grand Garden is a hotel with 260 suites. Its regular suite price is $250 per night per sulte. The hotel's total cost per night is $180 per suite and consists of the following. Variable cost Fixed cost $ 140 40 $ 180 Total cost per night per suite 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 240 suites for one night if the hotel accepts a price of $148 per night. (a) What is the contribution margin from this special offer? (b) Should the Bikers' Club offer be accepted or rejected? Contribution margin from Bikers' Club special offer: Revenues from special offer Should the Bikers' Club offer be accepted or rejected

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