A local science museum normally sells tickets to its museum for $5 each. The daily maximum capacity of the museum is 1,000 visitors. At the maximum capacity, fixed costs are $2 per visitor and variable costs are $1.50 per visitor. A local school group has approached the museum wishing to purchase 50 special passes at a cost of $2.50 each. Assuming the museum has excess capacity, if the special
order were accepted, net income would:
A) increase by $50.00.
B) decrease by $125.00.
C) increase by $125.00.
D) decrease by $50.00.
A
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