I. 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 material cost Fixed Cost ($6,022,500/150 suites)/365 days $ 30 110 Total cost per night per suite....... ..$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. The manager believes that if 50 suites are offered at the rate of $125 per night for three nights, the hotel would lose $2,250, computed as ($125 - $140) x 50 suites x 3 nights. Required: a. Prepare an analysis of this offer for the hotel manager. Explain (with supporting computations) whether the offer from the Bikers' Club should be accepted or rejected. b. Based on your analysis in a., what your final conclusion be different if the Bikers' Club's annual meeting took place in July which is the hotel's high season with an occupancy rate of over 98%? Why or Why not? c. Compute the hotel room breakeven analysis based on both a rate of $140 and the proposed rate of $125. Do the results of your breakeven analysis alter your answers to the previous questions? Explain