Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Score: 0 of 2 pts 4 of 4 (3 complete) HW Score: 62.5%, 5 of 8 pts S7-6 (similar to) Question Help Great Cruiseline offers

image text in transcribed

Score: 0 of 2 pts 4 of 4 (3 complete) HW Score: 62.5%, 5 of 8 pts S7-6 (similar to) Question Help Great Cruiseline offers nightly dinner cruises departing from several cities on the eastern coast of the United States including Charleston, Baltimore, and Alexandria. Dinner cruise tickets sell for $60 per passenger. Great 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 $450,000 per month. Under these conditions, the breakeven point in tickets is 15,000 and the breakeven point in sales dollars is $900,000. Suppose Great Cruiseline embarks on a cost reduction drive and slashes fixed expenses from $450,000 per month to $246,000 per month. Read the requirements. 1. Compute the new breakeven point in units and in sales dollars. Begin with the breakeven point units. Enter the formula, then compute the breakeven point. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.) Fixed expenses + Breakeven units +

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Development Of Integrated Reporting In The SME SectorCase Studies From European Countries

Authors: Joanna Dyczkowska, Andrea Szirmai Madarasine, Adriana Tiron-Tudor

1st Edition

3030819027, 9783030819026

More Books

Students also viewed these Accounting questions

Question

=+Could you use an ambient ad?

Answered: 1 week ago