TB Problem Qu$.19-155($Algo$)$ Analyzing special offer

A hotel charges $$530$ per night for a room. The hotel has $315$ rooms. The hotel$$s total cost per night per room follows.

Fixed cost$ $60$Variable cost$250$Total cost per night per room$ $310$

During the slow season, the manager receives an offer to reserve $40$ rooms at a price of $$270$ per night. If the manager accepts the special offer, the company will still have excess capacity. Accepting this offer will not increase fixed costs.

a$)$ Compute the contribution margin from this special offer.

b$)$ Should the manager accept the special offer?