Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Classy Cruiseline offers nightly dinner cruises off the coast of Nanaimo and Victoria. Dinner cruise tickets sell for $50 per passenger. Classy Cruiseline's variable cost
Classy Cruiseline offers nightly dinner cruises off the coast of Nanaimo and Victoria. Dinner cruise tickets sell for $50 per passenger. Classy Cruiseline's variable cost of providing the dinner is $20 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $207,000 per month. The company's relevant range extends to 15,000 monthly passengers. If Classy Cruiseline has a target operating income of $120,000 per month, how many dinner cruise tickets must the company sell? First, identify the formula, and then compute the target sales in units. (Round your answer to the nearest whole number.) Target sales units +
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started