Question
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
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
$60
per passenger.
Great
Cruiseline's variable cost of providing the dinner is
$30
per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is
$270,000
per month. The company's relevant range extends to
19,000
monthly passengers.
If
Great
Cruiseline sells an additional
400
tickets, by what amount will its operating income increase (or operating loss decrease)?
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