the dinner is $30 per passenger, and the fxed cost of operating the vessels (dep
ID: 2552949 • Letter: T
Question
the dinner is $30 per passenger, and the fxed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $270,000 per month. The company's relevant range extends to 20,000 monthly Compute the number of dinner cruise tickets Classy Cruiseline must sell to breakeven. Use the shoricut unit contribution margin approach Breakeven units First, identity the formula, hen compube the breakeven sales in dollars (Complete all answer boxes. For amounts with a SO balance, make sure to enter "0" in the appropriate cell. Enter the contribution margin ratio asExplanation / Answer
Answer:
1
Sales revenue (1 passenger)
60
100%
Less: Variable expenses
30
50%
Contribution margin/unit
30
50%
Break even calculation for the company
Numerator
Denominator
Break even points
Fixed cost
/
Contribution margin per unit
270,000
30
9000
Units
Numerator
Denominator
Break even points
Fixed cost
/
Contribution margin ratio
270,000
50%
540000
Dollar
Sales revenue (1 passenger)
60
100%
Less: Variable expenses
30
50%
Contribution margin/unit
30
50%
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