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Im super confused. please help me ASAP! Luxury Cruiseline offers nightly dinner cruises departing from several cities on the East Coast of the United States
Im super confused. please help me ASAP!
Luxury 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 $60 per passenger. Luxury Cruiseline's variable cost of providing the dinner is $30 per passenger, and the fixed cost of operating the vessels (depreclation, salaries, docking fees, and other expenses) is $270,000 per month. Under these concitions, the breakeven point in tickets is 9,000 and the breakeven point in sales dollars is $540,000. Suppose Luxury Cruiseline embarks on a cost reduction drive and slashes fixed expenses from $270,000 per month to $192,000 per month. Read the requirements. 1. Compute the new breakeven point in units and in sales dollars. Begin with the breakeven point units. Enter the formula, then compute the breakoven point. (For amounts with a 50 balance, make sure to enter "0" in the appropriate input field.) Now compule the breakeven point in sales dollars. Enter the formula, then computo the breakoven point. (Enter the contribution margin ratio as a whole percent. For amounts with a $0 balance, make sure to enter "0" in the appropriate input field.) 2. Is the breakeven point higher or lower than under the original conditions? Explain how changes in foced costs generally affect the beceakeven point. The breakeven point is All else being equal, in fixed costs will decrease the breakeven point while increase the breakeven point. a decrease an increase Step by Step Solution
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