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Kiechel Employment Counseling,Inc

Question 87

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Kiechel Employment Counseling,Inc.provides career counseling to unemployed individuals.The standard rate for counseling services is $50 per hour.Variable costs per hour of counseling are $28,while fixed costs are estimated at $10 per hour.Kiechel has been approached by a company who has just laid off 50 employees and would like to provide 4 hours of counseling for each laid-off employee during the coming week.The company is willing to pay $35 per hour.
(A)Assuming that Kiechel has ample counselors who have no clients scheduled for the coming week,Kiechel should:

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Reject the offer since income will decre...

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