question no 7

OBJECTIVE: To enable learners to identify the relevant costs and benefits from costs and revenue information available in the financial database to aid timely decision-making. REQUIREMENT: Short term decision making Task 2b: CLO2 Question Ruby Airlines provides its passengers with the option of joining the Ruby Express Club, which entitles travellers to use the Club's facilities at any Malaysian airport during their flight. In addition to a private lounge and restaurant, club members receive discounts on food and beverages and access to a small health spa. Like many other airlines around the world, Ruby Airlines has seen its profits decline as a result of the Covid19 pandemic movement restriction. The Club, in particular, has demonstrated a pattern of consistent loss. The recent statement follows: If the Club is no longer in operation, its variable expenses can be avoided. On the other hand, Ruby will continue to be the owner of the club building. If the Club closes, the supervisory staff will no longer be employed. Ruby will no longer be responsible for the airport fee. Required: Decide on whether Ruby should discontinue the club operations. Demonstrate your calculation. (10 marks)