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Bay Cruiseline offers nightly dinner cruisers off the coast of Miami, San Francisco and Seattle. Dinner Cruise tickets sell for $60 per passenger. Variable Cost
Bay Cruiseline offers nightly dinner cruisers off the coast of Miami, San Francisco and Seattle. Dinner Cruise tickets sell for $60 per passenger. Variable Cost per passenger is $20 and the fixed cost is $275,000 per month. The company's relevant range extends to 10,000 monthly passengers.
a. What is the contribution margin per passenger?
b. What is the contribution margin ratio (round to two digits)?
c. Use the contribution margin ratio to project operating income $500,000?
d. Draw a graph of Bay Cruiseline's CVP relationship.
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