Managerial Accounting fifth edition chapter 7 S7-9 Fun time cruise line offers nightly dinner cruises departing from several cities on the eastern coast of the united states including Charleston, Biltmore and Alexandria. Dinner cruise tickets sell for $50 per passengers. Fun time Cruise lines variable cost of providing the dinner is $30 per passenger, and the fixed cost of operating the vessels (depreciation, salaries docking fees, and the fixed cost of operating the vessels (depreciation, salaries, docking fees and other expenses) is $210,000, per month. The companys relevant range extends to 20,000 monthly passengers.

Compute margin of safety Learning objective 5

Use the information from the fun time cruise line data set. If fun time cruise sells 12000 dinner cruises compute the margin of safety

1. In units (dinner cruise tickets).
2. In sales dollars
3. As a percentage of sales

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