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Super Cruiseline offers nightly dinner cruises departing from several cities on the eastern coast of the United States including Charleston, Baltimore, and Alexandria. Dinner cruise
Super 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 $80 per passenger. Super Cruiseline's variable cost of providing the dinner is $40 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $240,000 per month. The company's relevant range extends to 19,000 monthly passengers. The breakeven units are 6,000 tickets sold. If Super Cruiseline sells 8,000 dinner cruises, compute the margin of safety a. in units (dinner cruise tickets). b. in sales dollars. C. as a percentage of sales. a. If Super Cruiseline sells 8,000 dinner cruises, compute the margin of safety in units (dinner cruise tickets). Begin by determining the formula, then compute the margin of safety in units (dinner cruise tickets). (1) (2) Margin of safety in units b. If Super Cruiseline sells 8,000 dinner cruises, compute the margin of safety in sales dollars. Begin by determining the formula, then compute the margin of safety in sales dollars. (3) (4) Margin of safety in dollars c. If Super Cruiseline sells 8,000 dinner cruises, compute the margin of safety as a percentage of sales. Begin by determining the formula, then compute the margin of safety as a percentage of sales. (Round the percentage to the nearest tenth percent, X.X%) Margin of safety as a percentage of sales (5) (6) % (1) O Sale price per unit O Variable cost O Breakeven sales in units O Expected sales in units O Fixed cost (2) C O Sale price per unit O Breakeven sales in units O Variable cost O Expected sales in units O Fixed cost Sale price per unit O Variable cost (3) O O Sale price per unit O Breakeven sales in dollars O Variable cost O Expected sales in dollars O Fixed cost (4) O O Breakeven sales in dollars O Expected sales in dollars O Fixed cost (5) O O Breakeven sales in dollars O Expected sales in dollars O Fixed cost Margin of safety in dollars O Sale price per unit O Variable cost (6) O Breakeven sales in dollars O Expected sales in dollars O Fixed cost Margin of safety in dollars O Sale price per unit O Variable cost
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