Operating income from function

Reference no: EM13130649

A catering service has been asked to provide a lunch buffet the next day for 40 people at a set price of $10.50 per person; no function has been booked for the next two days. The catering service has fixed costs of $150.00 a day or $54,750 per operating year, and it operates with a variable cost of 65% of sales revenue. Calculate the operating income from the function and justify your decision to accept or reject the booking.

Reference no: EM13130649

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