Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Analyze Ocean Escape Cruise Lines' cost-volume-profit relationships Ocean Escape Cruise Lines has a boat with a capacity of 1,200 passengers. An eight-day ocean cruise

image text in transcribed

Analyze Ocean Escape Cruise Lines' cost-volume-profit relationships Ocean Escape Cruise Lines has a boat with a capacity of 1,200 passengers. An eight-day ocean cruise involves the following costs: Crew Fuel Fixed operating costs $240,000 60,000 800,000 The variable costs per passenger for the eight-day cruise include the following: Meals $900 Variable operating costs 400 The price of the cruise is $2,400 per passenger. a. Determine the break-even number of passengers for the eight-day cruise. passengers b. Assume 900 passengers booked the cruise. What would be the profit or loss for the cruise? c. Assume the cruise was booked to capacity. What would be the profit or loss for the cruise? d. If the cruise cannot book enough passengers to break even, how might the cruise line respond?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Carl warren, James Reeve, Jonathen Duchac, Sheila Elworthy,

Volume 1, 2nd canadian Edition

176509739, 978-0176509736, 978-0176509743

More Books

Students also viewed these Accounting questions