Ocean Cruiseline offers nightly dinner cruises departing from several cities on the East Coast of the United States including Charleston, Baltimore, and Alexandria. Dinner cruise tickets sell for $50 per passenger. Ocean Cruiseline's variable cost of providing the dinner is $20 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $210,000 per month. Under these conditions, the breakeven point in tickets is 7,000 and the breakeven point in sales dollars is $350,000. Suppose Ocean Cruiseline embarks on a cost reduction drive and slashes fixed expenses from $210,000 per month to $180,000 per month. Read the requirements. 1. Compute the new breakeven point in units and in sales dollars. Begin with the breakeven point units. Enter the formula, then compute the breakeven point. (For amounts with a $0 balance, make sure to enter "0" in the appropriate input field.) = Breakeven unitsRequirements 1. Compute the new breakeven point in units and in sales dollars. 2. Is the breakeven point higher or lower than under the original conditions? Explain how changes in fixed costs generallyr affect the hreakeven point. Ocean Cruiseline offers nightly dinner cruises departing from several cities on the East Coast of the United States including Charleston, Baltimore, and Alexandria. Dinner cruise tickets sell for $50 per passenger. Ocean Cruiseline's variable cost of providing the dinner is $20 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $210,000 per month. Under these conditions, the breakeven point in tickets is 7,000 and the breakeven point in sales dollars is $350,000. Suppose Ocean Cruiseline embarks on a cost reduction drive and slashes fixed expenses from $210,000 per month to $180,000 per month. Read the requirements. . . . 1. Compute the new breakeven point in units and in sales dollars. Begin with the breakeven point units. Enter the formula, then compute the breakeven point. (For amounts with a $0 balance, make sure to enter "0" in the appropriate input field.) Breakeven units Contribution margin per unit Contribution margin ratio Fixed expenses Operating income Units sold Get Variable expenses Clear all Check