Empire Plaza Hotel is a luxury hotel with 432 rooms. Its regular room rate is...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Empire Plaza Hotel is a luxury hotel with 432 rooms. Its regular room rate is $460 per night per room. The hotel's cost is $245 per night per room and consists of the following. Variable direct labor and materials cost Fixed cost Total cost per night per room $ 104 141 245 The hotel manager receives an offer to hold the Junior States of America (JSA) convention at the hotel in February, which is the hotel's low season with an occupancy rate of under 45%. JSA would reserve 100 rooms for four nights if the hotel could offer a 50% discount or a rate of $230 per night. The hotel manager is inclined to reject the offer because the cost per room per night is $245. Should the offer from JSA should be accepted or rejected? What is the contribution margin from accepting the offer? Answer is not complete. Contribution margin analysis Room rate per night Variable cost per night Contribution margin per night per room
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.