Exercise 19-18 (Static) Analyzing a special offer for a service company LO P3 Empire Airlines reports the following cost data for the year. The company flew 100 private flights during the year. A group has offered Empire $11,000 for a private flight to Chicago for its members. Revenue Wages, salaries, and benefits Fuel and oil Food and beverages Depreciation Rent (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.) (b) Should the offer be accepted or rejected? $ 20,000 per flight $7,000 per flight $ 4,500 per flight $ 500 per flight $ 300,000 per year $ 250,000 per year Complete this question by entering your answers in the tabs below. Required A Required

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Exercise 19-18 (Static) Analyzing a special offer for a service company LO P3
Empire Airlines reports the following cost data for the year. The company flew 100 private flights during the year. A group has offered
Empire $11,000 for a private flight to Chicago for its members.
Revenue
Wages, salaries, and benefits
Fuel and oil
Food and beverages
Depreciation
Rent
$ 20,000 per flight
$ 7,000 per flight
$ 4,500 per flight
$ 500 per flight
$ 300,000 per year
$ 250,000 per year
(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.)
(b) Should the offer be accepted or rejected?
Required A Required t
Complete this question by entering your answers in the tabs below.
Transcribed Image Text:Exercise 19-18 (Static) Analyzing a special offer for a service company LO P3 Empire Airlines reports the following cost data for the year. The company flew 100 private flights during the year. A group has offered Empire $11,000 for a private flight to Chicago for its members. Revenue Wages, salaries, and benefits Fuel and oil Food and beverages Depreciation Rent $ 20,000 per flight $ 7,000 per flight $ 4,500 per flight $ 500 per flight $ 300,000 per year $ 250,000 per year (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.) (b) Should the offer be accepted or rejected? Required A Required t Complete this question by entering your answers in the tabs below.
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