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 requirements.

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.$)$

Requirements

Compute the new breakeven point in units and in sales dollars.

Is the breakeven point higher or lower than under the original conditions?

Explain how changes in fixed costs generally affect the breakeven point.