I'm not sure if this is correct plus I am missing the wording in the...
70.2K
Verified Solution
Link Copied!
Question
Accounting
I'm not sure if this is correct plus I am missing the wording in the first line of answer
Empire Plaza Hotel is a luxury hotel with 420 rooms. Its regular room rate is $400 per night per room. The hotel's cost is $215 per night per room and consists of the following Variable direct labor and materials cost Fixed cost Total cost per night per room $ 80 135 $ 215 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 $200 per night. The hotel manager is inclined to reject the offer because the cost per room per night is $215. Should the offer from JSA should be accepted or rejected? What is the contribution margin from accepting the offer? Contribution margin analysis $ Variable cost per night Contribution margin per night per room Number of nights 60,000.00 16,000.00 44,000.00 $ 4
Answer & Explanation
Solved by verified expert
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!
