Question
Classy Cruiseline offers nightly dinner cruises departing from several cities on the eastern coast of the United States including Charleston, Baltimore, and Alexandria. Dinner cruise
Classy
Cruiseline offers nightly dinner cruises departing from several cities on the eastern coast of the United States including Charleston, Baltimore, and Alexandria. Dinner cruise tickets sell for
$80
per passenger.
Classy
Cruiseline's variable cost of providing the dinner is
$40
per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is
$240,000
per month. The company's relevant range extends to
11,000
monthly passengers.If
Classy
Cruiseline sells an additional
600
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).
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| = | Operating |
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| = |
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