Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Great Cruiseline offers nightly dinner cruises departing from several cities on the eastern coast of the United States including Charleston, Baltimore, and Alexandria. Dinner Cruise

image text in transcribed

Great Cruiseline offers nightly dinner cruises departing from several cities on the eastern coast of the United States including Charleston, Baltimore, and Alexandria. Dinner Cruise tickets sell for $80 per passenger. Great Cruiseline's variable cost of providing the dinner is $40 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 12,000 monthly passengers. Compute the number of dinner cruise tickets Great Cruiseline must sell to breakeven and the sales dollars needed to breakeven. Compute the number of dinner cruise tickets Great 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 answer boxes. For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.) = Breakeven units ( Compute the sales dollars needed to breakeven. Use the shortcut unit contribution margin ratio approach. First, identify the formula, then compute the breakeven sales in dollars. (Complete all answer boxes. For amounts with a $0 balance, make sure to enter "0" in the appropriate cell. Enter the contribution margin ratio as a whole percent.) Breakeven sales

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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 Accounting

Authors: Robert Libby

1st Canadian Edition

0070891737, 978-0070891739

More Books

Students also viewed these Accounting questions

Question

How did World War II shape Anna Freuds research and thought?

Answered: 1 week ago