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Exercise 19-18(Algo) Analyzing a special offer for a service company LO P3 Emplre...

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Accounting

Exercise 19-18(Algo) Analyzing a special offer for a service company LO P3
Emplre Airlines reports the following cost data for the year. The company flew 100 private flights during the year. A group has offered Empire $11,500 for a private flight to Chicago for its members.
Revenue
Wages, salaries, and benefits
Fuel and oil
Food and beverages
Depreciation
Rent
$ 20,500 per flight
$7,500 per flight
$5,000 per flight
$600 per flight
$325,000 per year
$275,000 per year
(a) What is the contribution margin from accepting the offer?
(b) Should the offer be accepted or rejected?
Complete this question by entering your answers in the tabs below.
Required A
What is the contribution margin from accepting the offer? (Note: A negative contribution margin should be entered as a negative number and will appear in parentheses.)
\table[[EMPIRE AIRLINES],[Contribution Margin,],[Variable costs,,],[,,],[,,],[,,],[,,]]
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