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Part 1

Queen Cruiseline offers nightly dinner cruises off the coast of Nanaimo and Victoria. Dinner cruise tickets sell for $50 per passenger. Queen's variable cost of providing the dinner is $10 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $180,000 per month. The company's relevant range extends to 20,000 monthly passengers. Draw a graph of Queen's CVP relationships. Include the sales revenue line, the fixed expense line, the total expense line, and the break-even point. Determine the income area and the loss area.

Draw a graph of Queen's CVP relationships. Include the following: three separate lines for sales revenue, fixed expense, and total expense and plot the break-even

point. Be sure to label each item drawn on the graph. (Enlarge the graph to maximum size and use the line tool and point tool buttons displayed to draw the graph.)

0 - 15,0000600,000Units (Passenger Round-Trips)Dollars