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FunTime Cruiseline offers nightly dinner cruises departing from several cities on the East Coast of the United States including Charleston, Baltimore, and Alexandria. Dinner cruise

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FunTime Cruiseline offers nightly dinner cruises departing from several cities on the East Coast of the United States including Charleston, Baltimore, and Alexandria. Dinner cruise tickets sell for $50 per passenger. FunTime 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 $210,000 per month. Under these conditions, the breakeven point in tickets is 10,500 and the breakeven point in sales dollars is $525,000. Suppose FunTime Cruiseline embarks on a cost reduction drive and slashes fixed expenses from $210,000 per month to $150,000 per month. Read the tequirements. 1. Compute the new breakeven point in units and in sales dollars. Begin with the breakeven point units. Enter the formula, then compute the breakeven point. (For amounts with a $0 balance, make sure to enter "0" in the appropriate input field.) = Breakeven unitsRequirements 1. Compute the new hreakeven point in units and in sales dollars. 2. Is the breakeven point higher or lower than under the original conditions? Explain how changes in fixed costs generally affect the hreakeven point. Fu es departing from several cities on the East Coast of the United States inc ia. Dinner cruise tickets sell for $50 per passenger. FunTime Cruiseline's val r passenger, and the fixed cost of operating the vessels (depreciation, sal ; $210,000 per month. Under these conditions, the breakeven point in tick Contribution margin per unit ales dollars is $525,000. Suppose FunTime Cruiseline embarks on a cost rec om $210,000 per month to $150,000 per month. Contribution margin ratio Re Fixed expenses .. . Operating income 1. Units sold and in sales dollars. Be ba Variable expenses e formula, then compute the breakeven point. (For amounts with a $0 riate input field.) = Breakeven units

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