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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
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?
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