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xercise 19-13 Variable cost analysis for a special order LO A1 Grand Garden is a...

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xercise 19-13 Variable cost analysis for a special order LO A1 Grand Garden is a luxury hotel with 160 suites. Its regular suite rate is $220 per night per suite. The hotel's cost er night is $145 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 $ 44 101 $ 145 The hotel manager received an offer to hold the local Bikers' Club annual meeting at the hotel in March, which is he hotel's low season with an occupancy rate of under 55%. The Bikers' Club would reserve 45 suites for three hoter because the cospn ese of Ss per nignt The hotel manager s incdineto reject per suite per night is $145 equired repare an analysis of this offer for the hotel manager. Contribution margin analysis

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