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Live It Cruiseline offers nightly dinner Cruises departing from several cities on the eastern coast of the United States including Charleston, Baltimore, and Alexandria Dinner

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Live It 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 soll for 560 per passenger Live It Cruiseline's variable cost of providing the dinner is $30 per passenger, and the forced cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $450,000 per month. Under these conditions, the breakeven point in tickets is 15,000 and the breakeven point in sales dollars is $900,000. Suppose Live It Cruiseline embarks on a cost reduction drive and slashes forced expenses from $450,000 per month to $246,000 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, the compute the breakeven point. (For amounts with a $0 balance, make sure to in the appropriate cell) Breakeven units Now compute the breakeven point in sales dollars. Enter the formula han compute the braven point balance make sure to enter the propriate cet) to the contribution margin as a whole percent For amounts with a 30 - Beleven sales - 2. is the breakeven point ghor or lower than under the original conditions? Explain how changes in fred costs generally affect the breakeven point The breakeven point is Alleite being equal in foed costs wil decrease the breakoven point whe r ed costs will increase the breakeven point

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