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Classy Cruiseline offers nightly dinner cruises departing from soveral cities on the East Coast of the Unived States including Charleston, Baltimore, and Nexandria. Dinner cruise
Classy Cruiseline offers nightly dinner cruises departing from soveral cities on the East Coast of the Unived States including Charleston, Baltimore, and Nexandria. Dinner cruise feckets sell for $50 pet passenger. Classy Cruiseline's variablo cost of providing the dinner is $20 per passenger, and the fored cost of coerating the vessels (depreciation, salaries, docking fees, and other expenses) is $210,000 per month. The company's relevant range extends to 12,000 monthly passengers: Use this information to compute the following: a. What is the contribution margin per passengen? b. What is the contribution margin rasio? c. Use the unit contribution margin to project operating income it monthly sales total 9,000 passengers d. Use the contribution margin ratio to project operating income if montrily sales revenue totals $490,000 a. What is the contribution margin por passenger? First identify the formula, then compute the contribution margin per passenger
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