Exercise $19-17($Algo$)$ Analyzing a special offer for a service company LO P$3$

Grand Garden is a hotel with $140$ suites. Its regular suite price is $$220$ per night per suite. The hotel$$s total cost per night is $$150$ per suite and consists of the following.

Variable cost$ $110$Fixed cost$40$Total cost per night per suite$ $150$

The hotel manager receives an offer to hold the local Bikers$$ Club meeting at the hotel in March, which is the hotel$$s slow season with a low occupancy rate per night. The Bikers$$ Club would reserve $100$ suites for one night if the hotel accepts a price of $$118$ per night.

$($a$)$ What is the contribution margin from this special offer?

$($b$)$ Should the Bikers$$ Club offer be accepted or rejected?