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break-even number of passengers for a cruise Ocean Escape Cruise Lines has a boat with a capacity of 1,200 passengers. An eight-day ocean cruise involves

break-even number of passengers for a cruise

Ocean Escape Cruise Lines has a boat with a capacity of 1,200 passengers. An eight-day ocean cruise involves the following costs:

Crew$240,000Fuel60,000Fixed operating costs800,000The variable costs per passenger for the eight-day cruise include the following:

Meals$900Variable operating costs400The price of the cruise is $2,400 per passenger.

a.Determine the break-even number of passengers for the eight-day cruise.

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?

$

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