S7-1 (similar to) Question Help States including Charleston, Baltimore, and Alex
ID: 2539183 • Letter: S
Question
S7-1 (similar to) Question Help States including Charleston, Baltimore, and Alexandria. Dinner cruise tickets sell for S$80 per passenger. Luxury Cruiseline's variable cost of providing the dinner is $40 per passenger, and the fixed cost of operating the vessels a. What is the contribution margin per passenger? (depreciation, salaries, docking fees, and other expenses) is $240,000 per month. The company's relevant range b. What is the contribution margin ratio? extends to 13,000 monthly passengers. c. Use the unit contribution margin to project operating income if monthly sales total 10,000 passengers. d. Use the contribution margin ratio to project operating income if monthly sales revenue totals 5515,000 a. What is the contribution margin per passenger? First identify the formula, then compute the contribution margin per passenger. Contribution margin per passengerExplanation / Answer
Answer to part 1
Dinner Cruise Ticket sells for
80
Variable Costs
40
Contribution Margin Per Passenger (80-40)
40
Answer to part 2
Dinner Cruise Ticket sells for
80
Variable Costs
40
Contribution Margin Per Passenger (80-40)
40
Contribution Margin ratio (40/80)*100
50%
Answer to part 3
Sales
10000*80
800000
Variable Costs
10000*40
400000
Contribution Margin
400000
Fixed Costs
24000
Operating Income
376000
Answer to part 4
Sales
515000
Variable Costs
515000-257500
257500
Contribution Margin
515000*50%
257500
Fixed Costs
24000
Operating Income
233500
Answer to part 1
Dinner Cruise Ticket sells for
80
Variable Costs
40
Contribution Margin Per Passenger (80-40)
40
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.