Question
Crystal Crystal Cruise Line offers nightly dinner cruises off the coast of Miami, San Francisco, and Seattle. Dinner cruise tickets sell for $50 per passenger.
Crystal Crystal Cruise Line offers nightly dinner cruises off the coast of Miami, San Francisco, and Seattle. Dinner cruise tickets sell for $50 per passenger. Crystal 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. Use this information to compute the following: If CrystalCrystal Cruiseline sells an additional 600 tickets, by what amount will its operating income increase (or operating loss decrease)?
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