Grand garden is a luxury hotel with 155 suites. It's regular suite rate is $230 per night per suite. The hotels cost per night is $155 per suite and consists of the following

Saved Help Save & Exit Submit Check my work 13 Variable direct labor and materials cost $ 49 Fixed cost [ ($5,970,000/155 suites) : 365 days] 106 Total cost per night per suite $ 155 its The hotel manager receives 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 55%. The Bikers' Club would reserve 45 suites for three nights if the hotel could offer a 55% discount, or a rate of $103 per night. The hotel manager is inclined to reject the offer because the cost per suite per night is $155. eBook Prepare an analysis of this offer for the hotel manager. Should the offer from the Bikers' Club should be accepted or rejected? What is Print the contribution margin from accepting the offer? Contribution margin analysis