• OceanView Cruises wants to understand its operating costs related to the number of passengers.
• Data Overview:
  • Low Season: Total Costs: $500,000, Passengers: 5,000
  • High Season: Total Costs: $1,200,000, Passengers: 12,000
• Required Analysis:
  • Use the High-Low Method to calculate the variable cost per passenger and fixed costs.
  • Develop a cost equation.
  • Estimate the total costs for 15,000 passengers.
  • Discuss the impact of offering all-inclusive packages on operating costs.