CVP Comprehensive Problem Bay Cruiseline offers nightly dinner cruises off the coast of Miami, San Francisco, and Seattle. Dinner cruise tickets sell for $50 per passenger. Bay 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 15,000 monthly passengers. 1. What is the contribution margin per passenger? 2. What is the contribution margin ratio? 3. Use the contribution margin to project operating income if monthly sales total 10,000 passengers. 4. Use the contribution margin ratio to project operating income if monthly sales revenue totals $400,000. 5. If Bay Cruiseline sells an additional 500 tickets, by what amount will Ol increase (decrease)? 6. Compute the number of dinner cruise tickets it must sell to break-even. 7. If Bay Cruiseline has a target operating income of $60,000 per month, how many dinner-cruise tickets must the company sell? 8. If Bay Cruiseline has a target after-tax income of $60,000 per month, how many dinner-cruise tickets must the company sell? Bay Cruiseline's tax rate is 25%. 9. Suppose Bay Cruiseline cuts its dinner-cruise ticket price from $50 to $40 to increase the number of passengers. Compute the new break-even point in units.