Use the information from the Northern Cruiseline Data Set. Suppose Northern Cruiseline embarks on a cost-reduction drive and slashes fixed expenses from $210,000 per month to $180,000 per month.
1. Compute the new break-even point in units and in sales dollars.
2. Is the break-even point higher or lower than in S7-3? Explain how changes in fixed costs generally affect the break-even point.