Regency is a cruise ship company. It currently has six ships and plans to add two more. It offers luxury passenger cruises in the Caribbean, Alaska, and the Far East. Management is currently addressing what to do with an existing 

ship, the S.S. Princess, when she is replaced by a new ship. The S.S. Princess is now sailing the Caribbean and will be replaced next year. The S.S. Princess might be moved to the Mediterranean for a new 7-day Greek island tour. A 

7-day cruise would depart Athens Sunday night, stop at four ports before returning to Athens Sunday morning, and prepare for a new cruise that afternoon. The S.S. Princess can carry as many as 1,000 passengers. The data below summarize the operating costs for this 7-day cruise. Estimated Operating Costs for 7-day Greek Island Cruise Description   Variable Costs* Fixed Costs** Labor 75,000 100,000 Food 236,000 45,200 Fuel  180,000 Port fees and 

services  103,000 Marketing, advertising, promotion  255,000 Supplies 31,000 65,000 Totals    342,000 748,200 * Based on 950 passengers ** Fixed costs per weekly cruise. 

REQUIRED: 1.Assuming the seven-day Greek cruise can be priced at an average of $1,520, calculate the break-even number of passengers per cruise using the data provided. 2.Passengers purchase beverages, souvenirs, and 

services while on the ship. The ship makes money on the purchases. If the ship line has a margin of 50% on all such onboard purchases, how much would the average passenger have to purchase for the break-even point to be 

600 passengers?