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Funtime Cruiseline oflers nightly dinner cruses deparfing from several otics on the East Coast of the United States including Charieston, Baltimore, and Alexandria. Drnner cruise

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Funtime Cruiseline oflers nightly dinner cruses deparfing from several otics on the East Coast of the United States including Charieston, Baltimore, and Alexandria. Drnner cruise tickets sell for $50 per passenger. Funtime Cruisetine's variablo cost of providing the dinner is $30 por passenger, and the fored cost of operating the vessels (depreciation, salarles, docking fees, and other expenses) is $210.000 per menth. Under these cond tons, the breakoven point in tickets is 10,500 and the benakeven point in snies dollars is 5525,000 . 1. Suppose FunTime Criseline cuts its dinner cruise ticket prico from $50 to $45 to increase the number of passengers. Computo the new breakayen point in units and in sales dollars. Explain how changes in sales price generaly affect the broakeven point: 2. Assume that Funtime Cruisoline dees not cut the price. Funtime Cruiseline could teduce its variable costs by no longer saring an appetieer before dinner, Supposo this operaling change reduces the variable expense from $30 to $20 per possenger. Compute the new breakeyen point in units and in dollars. Explan how changes in variable costs generaly atsoct the beoakeven point. changes in sales price generaby attect the breakeven point to enter "or" in the apgropriale input feed? Now compule the treakeven point in sales dolare. Enter the fonsula, then compuin the breakeven sales. (Enter the contritulion margin ratio as a percent roonded yo five decimal placesi, 2. Assume that FunTime Cruiseline does not eut the price. Funteme Craseine could reduce its variable costs by no longer serving an appebizer beforn dinnet Suppose ithis coperatig change teduces the variable expense from $30 to $20 per pastongec Computo the new breakoven point in units and in dollars. Explain how changes in variable costs gonerally affect the breakeven point Lefs begin with the breakeven point unuts. Enter the formula, then compute the breakevel point in unis. (Round your final answers up lo the nnarest whole nuentier. For amounts with a 50 balance. make bure to enter "Oo" in the apgropoale inbut feld). bulanci, make ture lo enter "go in the mppopnate inpul field)

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