Assuming the museum has excess capacity

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Reference no: EM13793360

A local science museum normally sells tickets to its museum for $5 each. The daily maximum capacity of the museum is 1,000 visitors. At the maximum capacity, fixed costs are $2 per visitor and variable costs are $1.50 per visitor. A local school group has approached the museum wishing to purchase 50 special passes at a cost of $2.50 each. Assuming the museum has excess capacity, if the special order were accepted, net income would:

A. Increase by $125.00

B. Increase by $50.00

C. Decrease by $125.00

D. Decrease by $50.00

Reference no: EM13793360

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