MINI-CASE #1-SAILING VOYAGES COST-VOLUME-PROFIT CASE Sailing Voyages, Inc. is a company owned and operated by Marco Smith as a summer tourist attraction on the Great Lakes. It operates a sailing schooner offering day cruises for individuals and groups. Over the last few years, the average number of tourists per cruise was 30. The average charge per person for the cruise, including group discounts, was $100. The company operates from mid-May until mid-September. On average, the ship sails 100 days during this period. The Canadian (the name of the schooner) requires a crew of 6 and is captained by the owner of the company. University students with extensive sailing experience have been willing to work on a per diem basis of $100. They are paid only if the ship is cruising. The ship provides non- alcoholic refreshments and a light lunch. These are acquired daily from a local delicatessen and cost, on average $25 per person. The daily operating expenses, fuel and miscellaneous supplies average $50 a cruise. The company has a variety of annual expenses including: maintenance, depreciation, marketing, licenses, etc., totaling approximately $85,000. As a co-op student working for Sailing Voyages, you have been tasked with preparing a formal report to the owner addressing the requirements below. Refer to the document "Guidelines for Mini Cases and In-class Case Assignments" to guide your report presentation. Required 1. Compute the revenue and variable expenses for each cruise. 2. Compute the number of cruises the Canadian must have each year to break-even. 3. The owner expects a total return on capital and remuneration for the being the captain of $125,000. Using the concept of contribution margin and cost-volume-profit notion, estimate how many cruises the Canadian needs to make to reach this objective? Is this a realistic expectation? 4. Prepare a contribution margin income statement for Sailing Voyages Inc. based on current average capacity. If the owner wishes to adjust or achieve his income goal, what changes can he make? How can these changes be easily estimated