Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Titanic Cruise Company plans on releasing it's new Superliner cruise ship in time for the peak Spring cruise season. The Superliner is the largest and

Titanic Cruise Company plans on releasing it's new "Superliner" cruise ship in time for the peak Spring cruise season. The Superliner is the largest and most expensive cruise ship ever built. The ship will be longer than 4 football fields. The ship has amenities that were never possible before on a commercial cruise ship. Features include rock climbing walls, skydiving simulators, an open air "atrium" version of Central Park, and nearly two dozen specialty restaurants.

Sinbad the Sailor, the President and CEO of Titanic, wants to figure out which itinerary for the ship's 17 day maiden voyage will be most profitable. He began by selecting a list of ports for the ship's maiden voyage. He then projected 358,000 dollars daily onboard revenue for each port based on the maximum passenger capacity. In addition, he projected daily shore excursion revenue for different ports. Finally, he projected all of the daily expenses for each port including docking fees, local taxes, fuel costs, labor costs, and supplies and raw materials.

Sinbad must consider two basic constraints when planning the itinerary. First, the ship must stay at least one day at each of the "target" ports listed because partial-day scheduling is not feasible. Second, the ship cannot spend more than 3 days in any individual target port because maritime regulations and individual port guidelines prevent longer stays. Use the information provided in the next table and help Sinbad find the most profitable itinerary for the ship's maiden voyage.

need to know the excel -solver solution. The available answers do not meet all constraints. Need to spend atleast 1 day per port, max 3 days per location

image text in transcribed Daily Shore Daily Daily Port Excursion Docking Local Daily Fuel Daily Labor Daily Supplies Costs Costs and materials Revenue Fees Taxes Aruba $25,897 $14,258 $1,189 $1,237 $98,230 $76,390 Bahamas $41,777 $45,221 $635 $1,587 $107,250 $85,250 Barbados $35,789 $86,254 $526 $1,897 $102,370 $68,730 Jamaica $37,899 $52,899 $428 $2,750 $96,320 $88,220 Miami $25,894 $72.899 $1,199 $1,674 $102,390 $74,380 San Juan $42,879 $88,524 $458 $2,584 $106,450 $73,470 St Croix $32,874 $12,455 $850 $4, 125 $104,350 $89,230 St Martin $24,897 $72,158 $254 $1,528 $102,890 $82,760 St Thomas $28,597 $62,548 $1,026 $1,458 $109,370 $78,390 St. John $38,974 $12,685 $899 $1,426 $93,480 $92,650

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

Advanced Financial Accounting An IFRS Standards Approach

Authors: Pearl Tan, Chu Yeong Lim, Ee Wen Kuah

4th Edition

9789814821278, 9814821276

More Books

Students also viewed these Accounting questions

Question

What is a role model? (p. 8)

Answered: 1 week ago