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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
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 sell for $ per passenger. Live It Cruiseline's variable cost of
providing the dinner is $ per passenger, and the fixed cost of operating the
vessels depreciation salaries, docking fees, and other expenses is $ per
month. Under these conditions, the breakeven point in tickets is and the
breakeven point in sales dollars is $
Suppose Live It Cruiseline cuts its dinner cruise ticket price from $ to
$ to increase the number of passengers. Compute the new breakeven
point in units and in sales dollars. Explain how changes in sales price
generally affect the breakeven point.
Assume that Live It Cruiseline does not cut the price. Live It Cruiseline
could reduce its variable costs by no longer serving an appetizer before
dinner. Suppose this operating change reduces the variable expense
from $ to $ per passenger. Compute the new breakeven point in
units and in dollars. Explain how changes in variable costs generally
afferst the hreakeven noint
Suppose Live It Cruiseline cuts its dinner cruise ticket price from $ to $ to increase the number of passengers. Compute the new breakeven point in units and in sales
dollars. Explain how changes in sales price generally affect the breakeven point.
Begin with the breakeven point in units. Enter the formula, then compute the breakeven point. Round your final answers up to the nearest whole number. For amounts with
a $ balance, make sure to enter in the appropriate input field.
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