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op Homework: Chapter 7 Homework III Question 3, S7-6 (similar to) Part 1 of 3 HW Score: 10%, 2.5 of 25 points Points: 0 of
op Homework: Chapter 7 Homework III Question 3, S7-6 (similar to) Part 1 of 3 HW Score: 10%, 2.5 of 25 points Points: 0 of 3 Save Coast 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 . Coast Cruiseline's variable cost of providing the dinner is $20 per passenger, and the fixed cost of afe operating the vessels (dopreciation, salaries, docking fees, and other expenses) is $270,000 per month Under these conditions, the breakeven point in tickets 19.000 and the breakeven point in sales dollars les $450,000 Suppose Coast Cruiseline embarks on a cost reduction drive and slashes ficed expenses from $270,000 per month to $255,000 per month Read the requirements any b 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 50 balance, make sure to enter in the raft ser appropriate input field) used Breakeven units 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 generally affect the breakeven point
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