Grand Garden is a luxury hotel with 150 suites. Its regular suite rate is $250 per night per suite. The hotel's cost per night is $140 per suite and consists of the following. Variable direct labor and materials cost Fixed cost [($6,822,500/150 suites) 365 days] Total cost per night per suite $ 30 110 140 The hotel manager received an offer to hold the local Bikers Club annual meeting at the hotel in March, which is the hotel's low season with an occupancy rate of under 50%. The Bikers' Club would reserve 50 suites for three nights if the hotel could offer a 50% discount, or a rate of $125 per night. The hotel manager is inclined to reject the offer because the cost per suite per night is $140 Required Prepare an analysis of this offer for the hotel manager Answer is complete but not entirely correct. Contribution margin analysis s 250.00 Room rate per night Variable cost per night Contribution margin per night per suite Number of nights Number of suites Contribution margin from special offer Should management accept the special 30000 |$ 110 00 50 Yes 16,500 offer