East Fork Stables, LLC boards horses, offers equestrian and riding lessons, and leads western trail rides. CASA for Kids (Court Appointed Special Advocates) contacted East Fork Stables, LLC about a summer charity event. CASA for Kids requested a discounted western trail ride rate of $50 per person for 20 riders. East Fork Stables' advertised rate for a Western trail ride is $65 per person.

To consider this request, East Fork Stables, LLC determined the following cost per person for a western trail ride.

Cost to lead a Western trail ride

Labor, Trail Leader, 1 per every 5 riders ...........$ 50

Fixed building overhead, electric, insurance ..... 20

Fixed horse overhead, food, medicine .............. 10

Variable building overhead, per ride .................... 25

Variable horse overhead, per rider ........................ 2

Depreciation of assets ....................................... 50

Administrative expenses, per ride ........................ 20

Total for 5 riders or less ...................................... $177

East Fork Stables, LLC provides one Trail Leader for every five riders. Unavoidable costs include fixed building overhead, fixed horse overhead, and depreciation of assets. A summer event with CASA for Kids will not interfere with horse boarding or equestrian and riding lessons.

1. What would it cost East Fork Stables, LLC to provide a western trail ride for 20 persons?

2. What is the financial advantage (disadvantage) of accepting the special order?

3. Should East Fork Stables, LLC accept CASA for Kids's offer?