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S7-3 (similar to) Question Help Great Cruiseline offers nighty dinner Cruises departing from several cities on the eastern coast of the United States including Charleston,
S7-3 (similar to) Question Help Great Cruiseline offers nighty dinner Cruises departing from several cities on the eastern coast of the United States including Charleston, Baltimore, and Alexandria. Dinner Cruise tickets sell for $50 per passenger. Great Cruiseline's variable cost of providing the dinner is $20 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $270,000 per month. The company's relevant range extends to 16,000 monthly passengers. Compute the number of dinner cruise tickets Great Cruiseline must sell to breakeven and the sales dollars needed to breakeven. Compute the number of dinner cruise tickets Great 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 answer boxes. For amounts with a $0 balance, make sure to enter "O" in the appropriate cell.) Fixed expenses Operating income Contribution margin per unit = Breakeven units (S 270,000 0 ) $ 30 9,000 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 answer boxes. For amounts with a $0 balance, make sure to enter "o" in the appropriate cell. Enter the contribution margin ratio as a whole percent.) 1 = Breakeven sales Contribution margin per unit Contribution margin ratio Fixed expenses Operating income Units sold Variable expenses
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