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Hello, I need help with the following problem for managerial accounting: Special Order Mirax Adventure Co. provides river rafting tours that include rental of the

Hello, I need help with the following problem for managerial accounting:

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Special Order Mirax Adventure Co. provides river rafting tours that include rental of the equipment, transportation to the site, and lunch. Ticket prices are $150 per person, and up to 10 people can fit per raft. Mirax offers corporate retreats, on a per-case basis. Below is the information about costs per person/month. Variable Costs per Customer Rental Fees Lunch Overhead S & A expenses Total Fixed Costs per Month (500 tours) 18 Operations $ 5,000 5 Selling and Administrative 3,500 10 S40 LQ Farr Ltd. wants to hire Mirax for their monthly company retreat. There are 100 employees who will be going on the retreat, on a monthly basis from May through August. LQ Farr wants to pay $50,000 total for all 4 months. Complete the following: 1. What things does Mirax Adventure Co. need to consider when making this decision? 2. Under the current situation, should Mirax accept the offer from LQ Farr Ltd.? Show any necessary calculations and explain. 3. Summer (June through August) is the busy season for Mirax Adventure Co. Typically, they only have 1-2 rafts that do not get filled in a given week. Considering this capacity constraint, does your suggestion from part 2. change? Explain. (Show any necessary calculations.)

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