Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Northern Cruiseline offers nightly dinner cruises off the coast of Nanaimo and Victoria. Dinner cruise tickets sell for $80 per passenger. Northern ?Cruiseline's variable cost

Northern Cruiseline offers nightly dinner cruises off the coast of Nanaimo and Victoria. Dinner cruise tickets sell for $80 per passenger. Northern ?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 $200,000 per month. The?company's relevant range extends to 20,000 monthly passengers. If Northern Cruiseline has a target operating income of $130,000 per?month, how many dinner cruise tickets must the company?sell??

image text in transcribed
it} Northern Cmiseline otters nightly dinner cruises off the coast oi Nanaimo and Victoria. Dinner cruise tickets sell for $60 per passenger. Northern Cruiseline's variable cost of providing the dinner is $40 per passenger, and the xed cost of operating the vessels (depreciation, salaries. docking fees, and other expenses) is $200000 per month. The company's relevant range extends to 20.000 monthly passengers. If Northern Cruiseline has a target operating income of$130,000 per month. how many dinner cruise tickets must the company sell? First, identify the formula, and then compute the target sales in units. (Round your answer to the nearest whole number.) ( + Target sales units 4. )/ )I (

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Economics

Authors: Robert Frank, Ben Bernanke

5th edition

73511404, 978-0073511405

Students also viewed these Accounting questions