Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 4, $7-3 (book/static) HW Score: 79.5%, 7.16 of 9 points rk Part 2 of 2 Points: 0.5 of 1 Save FunTime Cruiseline offers nightly
Question 4, $7-3 (book/static) HW Score: 79.5%, 7.16 of 9 points rk Part 2 of 2 Points: 0.5 of 1 Save FunTime 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. FunTime Cruiseline's variable cost of providing the dinner is $30 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $210,000 per month. The company's relevant range extends to 20,000 monthly passengers. Compute the number of dinner cruise tickets FunTime Cruiseline must sell to breakeven and the sales dollars needed to breakeven. Compute the number of dinner cruise tickets FunTime Cruiseline must sell to breakeven. Use the shortcut unit contribution margin approach. First, identify the formula, then compute the breakeven sales in units. (Complete all input fields. For amounts with a $0 balance, make sure to enter "0" in the appropriate input field.) Fixed expenses Operating income Contribution margin per unit Breakeven units $ 210,000 $ 20 10,500 Compute the sales dollars needed to breakeven. Use the shortcut unit contribution margin ratio approach. First, identify the formula, then compute the breakeven sales in dollars. (Complete all input fields. For amounts with a $0 balance, make sure to enter "0" in the appropriate input field. Enter the contribution margin ratio as a whole percent.) Breakeven sales
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started