• Coastal Cruises wants to analyze its operating costs related to the number of cruises.
• Data Overview:
  • Low Season: Total Costs: $300,000, Cruises: 10
  • High Season: Total Costs: $450,000, Cruises: 15
• Required Analysis:
  • Use the High-Low Method to determine the variable cost per cruise and fixed costs.
  • Develop a cost equation.
  • Estimate the total costs for 20 cruises.

Discuss the cost implications of introducing new cruise routes.