Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Answer plz Ocean Cruiseline offers nightly dinner Cruises departing from several cities on the East Coast of the United States including Charleston, Baltimore, and Alexandria.
Answer plz
Ocean Cruiseline offers nightly dinner Cruises departing from several cities on the East Coast of the United States including Charleston, Baltimore, and Alexandria. Dinner Cruise tickets sell for $50 per passenger. Ocean Cruiseline's variable cost of providing the dinner is $20 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $270,000 per month. The company's relevant range extends to 18,000 monthly passengers. If Ocean Cruiseline sells an additional 300 tickets, by what amount will its operating income increase (or operating loss decrease)? First, identify the formula, then compute the operating income increase (or operating loss decrease). OperatingStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started