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Coast Cruseline oftees fightly cinner cruses departing from several cites on the East Coast of the Uniked. States including Charlestort. Batimore, and Alevandria. Diner oris

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Coast Cruseline oftees fightly cinner cruses departing from several cites on the East Coast of the Uniked. States including Charlestort. Batimore, and Alevandria. Diner oris sickets seli for $50 pet passenger. Coas? 1. Suppose Cosst Cruseline cuss its diner cnuile ticket price from 560 to $40 to harease the number of passengers, Compute the new Ereakeven peint in units and in saves tolan. Explais Cruseines's varable cest of provising the dincer is $20 per passenger, and the foed cost of cperating the how charces in sales price generaly affect the treakeren point vesseis (depreciation, aalaries, docking lees, and other expenses) is $110,000 per morit. Under thase. 2. Assume that Costst Crussine does not cul the price. Coast Cruselce could reduce its varisole costs by no longet terving an appelizer before dimer. Suppose this operating change redoces the varatie ecpesse trom $20 to $10 per passenger. Cempute the new breakeven poict in unts and in dolars. Explain hew chasges in wariable costs generaly atect the treskeven point

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