Exercise 19-13 Analyzing variable cost for a special order LO A1 Grand Garden is a luxury hotel with 150 suites. Its regular suite rate is $230 per night per suite. The hotel's cost per night is $155 per suite and consists of the following. Variable direct labor and materials cost Fixed cost [($5,170,000/150 suites). 365 days) Total cost per night per suite $ 48 107 $ 155 The hotel manager receives an offer to hold the local Bikers' Club annual meeting at the hotel in March, which is the hotel's low season with an occupancy rate of under 60%. The Bikers' Club would reserve 50 sultes for three nights if the hotel could offer a 60% discount, or a rate of $92 per night. The hotel manager is inclined to reject the offer because the cost per suite per night is $155. Prepare an analysis of this offer for the hotel manager. Should the offer from the Bikers' Club should be accepted or rejected? What is the contribution margin from accepting the offer? Contribution margin analysis Exercise 19-3 Income reporting under absorption costing and variable costing LO P2 Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows. 30 per unit 50 per unit Manufacturing costs Direct materials Direct labor Overhead costs Variable Pixed Selling and administrative costs for the year Variable Fixed Production and sales for the year Units produced Units sold Saleo price per unit $ 20 per unit $8,400,000 (per year) $ 700,000 $4,500,000 105,000 units 75,000 units 350 per unit 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2