Return to question 12 Grand Garden is a hotel with 240 suites. Its regular suite price is $210 per night per suite. The hotel's total cost per night is $150 per suite and consists of the following. 3 points Variable cost Fixed cost Total cost per night per suite $ 110 40 $ 150 The hotel manager receives an offer to hold the local Bikers' Club meeting at the hotel in March, which is the hotel's slow season with a low occupancy rate per night. The Bikers' Club would reserve 220 suites for one night if the hotel accepts a price of $118 per night. (a) What is the contribution margin from this special offer? (b) Should the Bikers' Club offer be accepted or rejected? & Answer is complete but not entirely correct. 21,240 X Contribution margin from Bikers' Club special offer: Revenues from special offer Variable costs Contribution margin from this special offer Should the Bikers' Club offer be accepted or rejected? 19,800 X 1,440 X accepted