=+3 Travel International, a tour operator, approaches Air Tropics with the possibility of chartering its aircraft. The terms of charter are as follows:

(a) for each one-way flight, Travel International will pay Air Tropics $74500 to charter the plane and to use its flight crew and ground-service staff;

(b) Travel International will pay for fuel costs; and

(c) Travel International will pay for all food costs.

On the basis of financial considerations alone, should Air Tropics accept Travel International’s offer? Show your calculations.

What other factors should Air Tropics consider in deciding whether to charter its plane to Travel International?