Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Super Cruiseline offers nightly dinner cruises departing from several cities on the East Coast of the United States including Charleston, Baltimore, and Alexandria Dinner Cruise

image text in transcribed
Super Cruiseline offers nightly dinner cruises departing from several cities on the East 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 520 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 breakever point in sales dollars is $350,000 1. Suppose Super Cruiseline cuts its dinner cruise ticket price from $50 to 540 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 2. 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 510 per passenger . Compute the new breakeven point in units and in dollars. Explain how changes in variable costs generally affect the breakeven point CE mes chan 1. Suppose Super Cruiseline cuts its dinner cruise ticket price from $50 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 dinswers up to the nearest whole number. For amounts with a 50 balance, make sure to enter"O in the approprlate input field) Operating income Contribution margin ratio Contribution margin per unit Breakeven units y4

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

AML Auditing Understanding Transaction Monitoring

Authors: Bob Walsh

1st Edition

1539519740, 978-1539519744

More Books

Students also viewed these Accounting questions