This are the formulas and breakdown calculations for health cruise case ( example)

Below is the break even expenses info: based on the below expenses can you help to answer the following questions and calculations?

Accounting Breakeven Terms Equation: Total revenue = Total costs (expenses) Total revenue = price (P) x volume (v) Total costs = fixed costs + variable costs a. Fixed costs (FC) do not vary with volume b. Variable costs (VC) vary with volume c. Variable costs = variable cost rate (VCR) x volume Difference between price and variable cost rate is defined as the contribution margin (CM) SmartArt Smartari Picture Arrange Accounting Breakeven Calculation Total revenue Price v = = Total costs FC + VCR v Pv.- VCRY v{P. - VCR) = FC FC = FC/(P-VCR) Breakeven and Profitability Projections Health cruise expenses Info: Costs/Expenses: - Ship and Crew: Initial Advertising: Administrative Expenses: Food, etc. Per Person: Average price per person: $220,000.00 $ 65,000.00 $10,000.00 $ 200.00 $1,550.00 (price)- NEW PRICE Currently have 200 guests signed up and paid; pre-planning goal for 300 guests Additional Advertising: $6,000.00 (20 additional guests) or $15,000.00 (40 additional guests) Questions: 1. List the fixed and variable costs (expenses) for this cruise. 2. With the current costs (fixed and variable) what is the accounting breakeven point in terms of number of guests. That is # of guests to breakeveno profit. a. Show your calculations 3. In order to achieve a breakeven point, which advertising campaign would you recommend: $6,000 (20 guests) or $15,000 (40 guests) a. Show your calculations 4. At the outset, if Health Cruises wanted to achieve a profit of $26,000, how many passengers would be necessary. Would an additional $6,000 or $15,000 achieve the profit sought; if profits are attainable, which of the two advertising campaigns would be necessary a. Show all calculations