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Classy Cruiseline offers nightly dinner cruises departing from several cities on the eastern coast of the Use this information to compute the following: United States
Classy Cruiseline offers nightly dinner cruises departing from several cities on the eastern coast of the Use this information to compute the following: United States including Charleston, Baltimore, and Alexandria. Dinner Cruise tickets sell for $50 per passenger. Classy Cruiseline's variable cost of providing the dinner is $20 per passenger, and the fixed a. What is the contribution margin per passenger? cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $270,000 per b. What is the contribution margin ratio? month. The company's relevant range extends to 18,000 monthly passengers. c. Use the unit contribution margin to project operating income if monthly sales total 15,000 passengers. d. Use the contribution margin ratio to project operating income if monthly sales revenue totals $520,000
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