Question: A 3 7 5 - room hotel received a group reservation request for 1 7 5 rooms for 4 nights. transient demand pattern:a . The

A 375-room hotel received a group reservation request for 175 rooms for 4 nights. transient demand pattern:a. The transient rate is forecasted at $225 b.an average F&B spending of a transient room is $55c.Transient Demand Information BelowTransient DemandThursday: transient forecast: 323Friday: transient forecast:274Saturday transient forecast:307Sunday: transient forecast 251group request:a. The group is prepared to pay $150 per night,b. An estimated F&B spending per group room is $60C.Total meeting room revenue is $8,500d. The group reservation request for 175 rooms for 4 nights.the cost information:a. Variable costs per room are $40,b. the cost of sales percentage for F&B is 60%c. the cost of the meeting room is 20%.With this information anwser the question Based only on the contribution margin, should we accept the group contract? ( please show every step of the displacement analysis)

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