Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

= Homework: Question 2, S4-3 (similar ... Part 1 of 6 HW Score: 64.87%, 9.08 of 14 points Points: 0 of 1 Save Great Cruiseline

image text in transcribed

= Homework: Question 2, S4-3 (similar ... Part 1 of 6 HW Score: 64.87%, 9.08 of 14 points Points: 0 of 1 Save Great Cruiseline offers nightly dinner cruises off the coast of Nanaimo and Victoria. Dinner cruise tickets sell for $50 per passenger. Great Cruiseline's variable cost of providing the dinner is $10 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $196,000 per month. The company's relevant range extends to 20,000 monthly passengers. Compute the number of dinner cruise tickets it must sell to break even. a. Use the income statement equation approach. b. Use the shortcut unit contribution margin approach; perform a numerical proof to ensure that your answer is correct. c. Use your answers from (a) and (b) to determine the sales revenue needed to break even. d. Use the shortcut contribution margin ratio approach to verify the sales revenue needed to break even. a. Compute the number of dinner cruise tickets it must sell to break even using the income statement equation approach. Begin by identifying the basic income statement equation. Operating income

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 For Management

Authors: Paresh Shah

2nd Edition

0198077033, 978-0198077039

More Books

Students also viewed these Accounting questions

Question

a sin(2x) x Let f(x)=2x+1 In(be)

Answered: 1 week ago

Question

Discuss how selfesteem is developed.

Answered: 1 week ago