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 $50 per passenger. Super 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 $210,000 per month. Under these conditions, the breakeven point in tickets is 7,000 and the breakeven point in sales dollars is $350,000 1. Suppose Super Cruiseline cuts its dinner cruise ticket price from S50 to $40 to increase the number of passengers. Compute the new breakeven point in units and in sales dollars. Explain how changes in sales price generally affect the breakeven point. Assume that Super Cruiseline does not cut the price. Super Cruiseline could reduce its variable costs by no longer serving an appetizer before dinner. Suppose this operating change reduces the variable expense from $20 to $10 per passenger. Compute the new breakeven point in units and in dollars. Explain how changes in variable costs generally affect the breakeven point. 2. 1. Suppose Super Cruiseline cuts its dinner cruise ticket price from S50 to $40 to increase the number of passengers. Compute the new breakeven point in units and in sales dollars. Explain how changes in sales price generally affect the breakeven point. Begin with the breakeven point in units. Enter the formula, then compute the breakeven point. (Round your final answers up to the nearest whole number. For amounts with a $O balance, make sure to enter "O" in the appropriate cell.) Fixed expenses Operating income Breakeven units Now compute the breakeven point in sales dollars. Enter the formula, then compute the breakeven sales. (Enter the contribution margin ratio as a whole percent. For amounts with a SO balance, make sure to enter "0" in the appropriate cell.) - Breakeven sales All else being constant, a decrease in sales price will the contribution margin per unit and contribution margin ratio. The breakeven point will therefore 2. Assume that Super Cruiseline does not cut the pric from $20 to $10 per passenger. Compute the new bre decrease ts and in dollars. Explain how changes in variable costs generally affect the breakeven point could reduce its variable costs by no longer serving an appetizer before dinner. Suppose this operating change reduces the variable expense Let's begin with the breakeven point units. Enter the f increase te the breakeven point in units. (Round your final answers up to the nearest whole number. For amounts with a $0 balance, make sure to enter
