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Ocean Crukseline offers nighty oinher cruises doparting from several cities on the East Coast of the Unihed States including Chaclesticn, Batimcre, and Alexandrix. Dinner cruise

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Ocean Crukseline offers nighty oinher cruises doparting from several cities on the East Coast of the Unihed States including Chaclesticn, Batimcre, and Alexandrix. Dinner cruise fickets self for $50 per passenger. Ocean Crulseline's variable cost of providing the dinner is $20 per passenger, and the feed cost of operafing the vessols (depreciation, salarios, docking fees, and other expenses) is $210,000 por month. Under these conditions; the breakeven point in tickets is 7.000 and the breakeven point in sales dolars is $350,000. Suppose Ocean Cruiseline embarks on a cost reduction drive and slashes fixed expenses from $210.000 per month io $180,000 per month. Read the reguirements 1. Compute the new breakeven point in units and in sales dollars. Begin with the breakeven point unts. Enser the formula, then compute the breakeven point. (For amounts with a so bolance, make sure to anter "Or is the apgroprtata ingrit field ] Now concule the breakeven point in sales dollars, Enter the foemula, then corrpute the breakeven point. (Enter the contribution margin rabo as a whele percant For Ocean Crulseline oflers nighty dinner cruises departing from soveral cities on the East Coast of the United States including Charleston, Batimore, and Alexandrla. Dinner cruise bickets sell for $50 per passenger. Ocean Cruseline's vaviable cost of providing the dinner is $20 per passenger, and the foved cost of operating the vessels (deprociabon, salarles, docking fees, and other expenses) is $210,000 per month. Under these condicions, the breakeven point in Eckets is 7,000 and the breakeven point in sales dollars is $350,000. Suppose Ocean Cruiseline embarks on a cost reduction deive and slashes fxed expenses from $210,000 per monith to $180.000 per month. Read the requirements. Now compute the breakeven point in sales dollars. Enter the formula, then compute the breakeven point. (Enter the contrbution margin ratio as a whole Percent. For ampunts with 350 balance, make sure to enter 0 in the appropriale inpus field.) 2. Is the breakeven point higher of lower than under the original conditions? Explain how changes in foxod costs generaily affect the breakoven point. The breskeven point is All else being equal, in fixed costs wil decrease the breakeven point whlle in fored costs wil increase the breakeven point

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