Sirhuds Inc., a maker of smartwatches, reports the information below on its product. The company uses absorption costing and has a target markup of 40% of absorption cost per unit. Direct materials cost Direct labor cost Variable overhead cost Fixed overhead cost Variable selling and administrative expenses Fixed selling and administrative expenses Expected production (and sales) $ 112 per unit $ 42 per unit 20 per unit $ 247,000 per year $ 9 per unit $ 150,000 per year 38,000 units per year Compute the target selling price per unit under absorption costing. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Per unit Direct materials Direct labor Variable overhead Fixed overhead Total product cost using absorption costing Target profit Target selling price $ 0.00 $ 0.00 Grand Garden is a luxury hotel with 160 suites. Its regular suite rate is $230 per night per suite. The hotel's cost per night is $155 per suite and consists of the following. $ Variable direct labor and materials cost Fixed cost [($5,870,000/160 suites) + 365 days] Total cost per night per suite 54 101 $ 155 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 40 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. 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