Exercise 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 $210 per night per suite. the hotel’s cost per night is $135 per suite and consists of the following. variable direct labor and materials cost $ 36 fixed cost [($5,770,000/160 suites) ÷ 365 days] 99 total cost per night per suite $ 135 the hotel manager received 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 55%. the bikers’ club would reserve 45 suites for three nights if the hotel could offer a 55% discount, or a rate of $94 per night. the hotel manager is inclined to reject the offer because the cost per suite per night is $135. required: prepare an analysis of this offer for the hotel manager.

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.