Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Crystal Cruiseline Data Set used for S7-1 through S7-12: Crystal Cruiseline offers nightly dinner cruises off the coast of Miami, San Francisco, and Seattle. Dinner

  • Crystal Cruiseline Data Set used for S7-1 through S7-12: Crystal Cruiseline offers nightly dinner cruises off the coast of Miami, San Francisco, and Seattle. Dinner cruise tickets sell for $50 per passenger. Crystal 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 $210,000 per month. The company’s relevant range extends to 14,000 monthly passengers. S7-1 Compute unit contribution margin and contribution margin ratio (Learning Objective 1) Use the information from the Crystal Cruiseline Data Set to compute the following: a. What is the contribution margin per passenger? b. What is the contribution margin ratio? c. Use the unit contribution margin to project operating income if monthly sales total 11,000 passengers. d. Use the contribution margin ratio to project operating income if monthly sales revenue totals $490,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Labor Relations Process

Authors: William Holley, Kenneth Jennings, Roger Wolters

10th edition

538481986, 978-1133713623, 1133713629, 978-0538481984

More Books

Students also viewed these Sociology questions