This is for Marketing!!

Additional Information:

Contribution Margin = Selling Price - variable Cost

Revenue = selling price * volume

Breakeven point = Fixed cost /contribution margin

Fixed cost = $265500

Varible cost = $176

Original Price = $1320

5. Starting with the next cruise, Health Cruises has been approached by the On-a-Whim Agency to act as travel agent and representative in booking the Health Cruise. On-a- Whim requires a 20% margin and Health Cruises fixed costs will remain the same due to on-going expenses and advertising. a. How much revenue would Health Cruises receive from each customer? [Hint You must factor in the On-a-Whim margin.] b. What is the new break even [show your Break Even calculations). c. Would you recommend that Health Cruises hire On-a-Whim and why or why not