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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 as

Explanation / 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%