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Excel Cruiseline offers nightly dinner cruises off the coast of Nanaimo and Victoria. Dinner cruise tickets sell for $60 per passenger. Excel Cruiseline's variable cost
Excel Cruiseline offers nightly dinner cruises off the coast of Nanaimo and Victoria. Dinner cruise tickets sell for $60 per passenger. Excel 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 $240,000 per month. The company's relevant range extends to 20,000 monthly passengers. The break-even units are 8,000 tickets sold. If Excel Cruiseline sells 12,500 dinner cruises, compute the margin of safety a. in units (dinner cruise tickets) b. in sales dollars c. as a percentage of sales. a. Begin by determining the formula, and then compute the margin of safety in units (dinner cruise tickets). (Round your answer to the nearest whole number.) Margin of safety in units Break-even sales in units Expected sales in units Fixed cost Sale price per unit Variable cost
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