MidCoast Airlines provides charter airplane services. In October of this year, the company is operating at 60% of its capacity when it receives a bid from the local community college. The college is organizing a Washington, DC trip for its International student group The college budgeted only $60,000 for round-trip airfare MidCoast Airlines normally charges between $80,000 and $90,000 for such service MidCoast determines Its cost for the round-trip flight to Washington to be $77000, which consists of the following Variable cost Fixed cont allocated) Total cost $33,000 44.000 $77,000 Although the manager at MidCoast supports the college's educational efforts, she cannot justify accepting the $60,000 bid for the trip given the projected $17,000 loss. Still, she decides to consult with you, an independent financial consultant Do you believe the airline should accept the bid from the college? What is the contribution margin from accepting the offer? Should airline accept the bid from the college? Contribution margin Grand Garden is a luxury hotel with 160 suites. Its regular suite rate is $210 per night per suite. The hotel's cost per night is $135 per suite and consists of the following Variable direct Tator and materials cost Pixed cost (55,970,000/160 moiton - 365 days! Total cost per night per suite 102 5.135 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 50 suites for three nights if the hotel could offer a 55% discount on a rate of 594 per night The hotel manager is inclined to reject the offer because the cost per suite per night is $135 Prepare an analysis of this offer for the hotel manager Should the offer from the Bikers Club should be accepted or rejected? What is the contribution margin from accepting the offer? Contribution margin analysis