1. Spirit of New York Cruise line offers nightly dinner cruises departing from Manhattan or Lincoln Harbor, NJ. The dinner cruise tickets sell for $120 per passenger. Spirit of New York Cruise line's variable cost of providing the dinner is $75 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $1,125,000 per month. The company's relevant range extends to 25,000 monthly passengers.

A. Suppose Spirit of New York Cruise line decides to cut its dinner cruise ticket price from 120 to 110 to increase the number of passengers

Compute the new breakeven points in units and in sale dollars

B Assume that Spriit Of New York Cruise line decided not to cut the price and keep. 120 but instead decided to reduce its variable costs by no longer serving an appetizer ad drinks before dinner. This reduce the variable expense from $75 to %65 per tickets.

C. Suppose Spririt of New York Cruise Line embarks on a major cost reduction drive and slashes its fixed expense from $1,125,000 per month to $850,000 per month. hdfhdfh The price is kept at $120 and variable cost stay at $75