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Grand Garden is a luxury hotel with 150 suites. Its regular suite rate is $230 per night per suite. The hotel's night is $155 per
Grand Garden is a luxury hotel with 150 suites. Its regular suite rate is $230 per night per suite. The hotel's night is $155 per suite and consists of the following. cost per Variable direct labor and materials cost Fixed cost t(ss,970,000/150 suites) 365 days109 Total cost per night per suite $ 46 s 155 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 40 suites for three nights if the hotel could offer a 50% discount or a rate of $115 per night. The hotel manager is inclined to reject the offer because the cost per suite per night is $155 Required: Prepare an analysis of this offer for the hotel manager Required: Prepare an analysis of this offer for the hotel manager. Contribution margin analysis
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