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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
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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.
Now compute the breakeven point in sales dollars. Enter the formula, then compute the breakeven sales. Enter the contribution margin ratio as a
whole percent. For amounts with a $ balance, make sure to enter in the appropriate input field.
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