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Coast Cruiseline offers nightly dinner cruises departing from several cities on the East Coast of the United States including Charleston, Baltimore, and Alexandria. Dinner cruise
Coast Cruiseline offers nightly dinner cruises departing from several cities on the East Coast of the United States including Charleston, Baltimore, and Alexandria. Dinner cruise tickets sell for $80 per passenger. Coast 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. Compute the number of dinner cruise tickets Coast Cruiseline must sell to breakeven and the sales dollars needed to breakeven. Compute the number of dinner cruise tickets Coast Cruiseline must sell to breakeven. Use the shortcut unit contribution margin approach. First, identify the formula, then compute the breakeven sales in units. (Complete all input fields. For amounts with a $0 balance, make sure to enter "0" in the appropriate input field.) Fixed expenses 240,000 Operating income Contribution margin per unit = Breakeven units 40 Compute the sales dollars needed to breakeven. Use the shortcut unit contribution margin ratio approach. 6,000 First, identify the formula, then compute the breakeven sales in dollars. (Complete all input fields. For amounts with a 50 balance, make sure to enter "0" in the appropriate input field. Enter the contribution margin ratio as a whole percent.) Breakeven sales %
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