Muskoka Travel offers guided tours through the lake system. Muskoka Travel provides a guide, necessary equipment, and food for a fee of $75 per person per day. Currently the company is providing an average of 600 guide-days per month. Based on available equipment and guides the maximum capacity is 950 guide-days (customers taken on the equivalent of an all-day tour) per month.

Variable costs per guide-day for the year were as follows:

Food $7.50 Guide's salary $37.50

Supplies 3.00 Insurance 12.00

Fixed costs per month during the year were as follows:

Equipment rental $7,500 Marketing $3,000

Administration 6,000 Customer service 1,500

Required:

A group of foreign tourists has offered Muskoka Travel a proposal of 300 guide-days in July if they will cut the fee to $67.50 per guide-day. They have their own food and do not want to use the Muskoka Travel menus. Muskoka Travel will incur $300 in additional costs for busing the tourists back and forth to the camp site. If fixed costs would not increase, should Muskoka Travel accept the special offer?