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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
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. S7-8 Changes in fixed costs (Learning Objective 3) Use the information from the Crystal Cruiseline Data Set. Suppose Crystal Cruiseline embarks on a cost reduction drive and slashes fixed expenses from $210,000 per month to $180,000 per month. 1. Compute the new breakeven point in units and in sales dollars. 2. Is the breakeven point higher or lower than in S7-3? Explain how changes in fixed costs generally affect the breakeven point. S7-3 Find breakeven (Learning Objective 2) Use the information from the Crystal Cruiseline Data Set to compute the number of din- ner cruise tickets it must sell to breakeven and the sales dollars needed to breakeven
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