Exercise $19-18($Algo$)$ Analyzing a special offer for a service company LO P$3$

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.$)$

$\backslash$table$[[$EMPIRE AIRLINES$],[$Contribution Margin,$],[$Variable costs,,$],[,,],[,,],[,,],[,,]]$