Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Live It Cruiseline offers nightly dinner cruises departing from several cities on the eastern coast of the United States including Charleston, Baltimore, and Alexandria.
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 $80 per passenger. Live It Cruiseline's variable cost of providing the dinner is $40 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $360,000 per month. The company's relevant range extends to 19,000 monthly passengers. Compute the number of dinner cruise tickets Live It Cruiseline must sell to breakeven and the sales dollars needed to breakeven. Compute the number of dinner cruise tickets Live It Cruiseline must sell to breakeven. Use the shortcut unit contribution margin approach. The number of dinner cruise tickets that Live It Cruiseline must sell in order to breakeven is
Step by Step Solution
★★★★★
3.39 Rating (143 Votes )
There are 3 Steps involved in it
Step: 1
To compute the breakeven point for Live It Cruiseline 1 Using the Breakeven Formula Breakev...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started