Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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 xed cost of operating the vessels (depreciation. salaries. docking fees, and other expenses) is $210,000 per month. The company's relevant range extends to 20,000 monthly passengers. Compute the number of dinner cruise tickets FunTime Cruiseline must sell to breakeven and the sales dollars needed to breakeven. Compute the number of dinner cruise tickets FunTime Cruiseline must sell to breakeven. Use the shortcut unit contribution margin approach. First, identify the formula. then compute the breakeven sales in units. {Complete all input fields. For amounts with a 50 balance. make sure to enter "0" in the appropriate input field.) { Fixed expenses + Operating income } _; Contribution margin per unit : Breakeven units { $ 210,000 + $ 0 j. + $ 20 : 10,500 Compute the sales dollars needed to breakeven. Use the shortcut unit contribution margin ratio approach. :irst, identify.r the formula. then compute the breakeven sales in dollars. (Complete all input elds. For amounts with a 50 balance, make sure to enter "0\" in the appropriate input field. Enterthe contribution margin ratio as a whole percent.) ( l + I J + '2 Breakeven sales (I + |J+ |% =

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Reporting And Analysis

Authors: Lawrence Revsine, Daniel Collins

4th Edition

0073527092, 978-0073527093

Students also viewed these Accounting questions