Ruby Airlines offers its passenger the opportunity to join Ruby Express Club that entitles a traveler to use the club facilities at any Malaysian airports. Club privileges include a private lounge and...

Question 5

Please assist in detail computation

Extracted text: Ruby Airlines offers its passenger the opportunity to join Ruby Express Club that entitles a traveler to use the club facilities at any Malaysian airports. Club privileges include a private lounge and restaurant, discounts on meals and beverages and use of a small health spa. As with other airlines around the globe, Ruby has been facing a decline in profit attributable to the Covid19 pandemic movement restriction. The Club, in particular, has shown consistent loss. The recent statement follows: Sales revenue Variable expenses: Food and beverages RM150,000 (70,000) (40,000) (25,000) Personnel Variable overhead Contribution margin Fixed expenses: Club building Depreciation Supervisory salary Airport fees General overhead (allocated) Profit (loss) 15,000 (30,000) (25,000) (15,000) (10,000) (65,000) All Club's variable expenses can be avoided should the club be discontinued. However, Ruby will continue to own the club building. The supervisory staff will no longer be employed if the club closes. Ruby will no longer pay the airport fee. Required: Decide whether Ruby should discontinue the club operations. Show your computation.