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please show all working out thanks! Question 1 Reconstruct the calculations to do with breakeven from Week 1 Workshop Exercise Question 1 parts a, b
please show all working out
thanks!
Question 1
Reconstruct the calculations to do with breakeven from Week 1 Workshop Exercise Question 1 parts a,
b and c for the firm Breathtaking Cruises. Assume there will still be three cruise trips on a daily basis if
you are asked in the Numerical Quiz to come.
(a) Calculate the breakeven passenger numbers for each of the three named cruise (Scenic, Farming and
Dolphin).
(b) Calculate the weekly contribution margins for Breathtaking Cruises when all three cruises are run on a daily basis.
(c) Calculate the breakeven number of weeks for Breathtaking Cruises to operate.
Question 2
B2: 2 marks [word limit: maximum 80 words]
Someone has kindly done the calculations and determined the following when determining whether to make or buy this new line of product item Pink fluorescent pen:
At 6,695 units, the relevant costs to make Pink fluorescent pen are $139,128 while the price to buy is
$132,226.
At 10,695 units, the relevant costs to make Pink fluorescent pen are $204,328 while the price to buy
is $211,226.
That the point of indifference to make or buy Pink fluorescent pen is 8,695 units.
Explain what these calculated relevant costs and the point of indifference convey to the business owner
at the different units of volume (at 6,695, 8,695 and 10,695 units).
Question 3
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