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 $50 per passenger. Coast 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 $270,000 per month. Under these conditions, the breakeven point in tickets is 9,000 and the breakeven point in sales dollars is $450,000. Suppose Coast Cruiseline embarks on a cost reduction drive and slashes fixed expenses from $270,000 per month to $255,000 per month. Read the requirements. . . . . . 1. Compute the new breakeven point in units and in sales dollars. Begin with the breakeven point units. Enter the formula, then compute the breakeven point. (For amounts with a $0 balance, make sure to enter "0" in the appropriate input field.) Contribution margin per Breakeven Fixed expenses + Operating income + unit = units $ 255,000 $ 0 30 8,500 Now compute the breakeven point in sales dollars. Enter the formula, then compute the breakeven point. (Enter the contribution margin ratio as a whole percent. For amounts with a $0 balance, make sure to enter "0" in the appropriate input field.) Fixed expenses + Operating income : Contribution margin ratio = Breakeven sales $ 255,000 $ 0 60 % $ 425,000 2. Is the breakeven point higher or lower than under the original conditions? Explain how changes in fixed costs generally affect the breakeven point. The breakeven point is higher . All else being equal, an increase in fixed costs will decrease the breakeven point while in fixed costs will increase the breakeven point