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Classy Cruiseline offers nightly dinner cruises off the coast of Nanaimo and Victoria. Dinner cruise tickets sell for $50 per passenger. Classy's variable cost of
Classy Cruiseline offers nightly dinner cruises off the coast of Nanaimo and Victoria. Dinner cruise tickets sell for $50 per passenger. Classy's variable cost of providing the dinner is $10 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $160,000 per month. The company's relevant range extends to 15,000 monthly passengers. Draw a graph of Classy's CVP relationships. Include the sales revenue line, the fixed expense line, the total expense line, and the break-even point. Determine the income area and the loss area. Draw a graph of Classy's CVP relationships. Include the following: three separate lines for sales revenue, fixed expense, and total expense and plot the break-even point. Be sure to label each item drawn on the graph. (Enlarge the graph to maximum size and use the line tool and point tool buttons displayed to draw the graph.) Q 800,000- 800,000 575,000 550,000 525,000 500,000 475,000 Dollars 450,000 425,000- 400,000- 375,000 350.000 325,000 Dollars 300.000 275,000 15,000 250,000 Delete Units (Passenger Round-Trips) Click to 225,000 enlarge 200,000 175.000 Clear graph 150,000 125,000 100.000 above the fixed expense line and below the total expense line 75.000 ? The operating income area is 50,000 25,000 The operating loss area is above the sales revenue line and below the total expense line Selected: none 15.000 Units (Passenger Round-Trips) above the total expense line and below the sales revenue line Cancel Save
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