Classy Cruiselines offers nightly dinners crusies from the coast of Miami, San Francisco, Seattle. Dinner

Cruise tickets sell for $50 per passenger. Classy Cruiselines variables cost of providing dinner is $20 per

passenger, and the fixed cost of operating the vessels is $ 270,000 per month. The company's relevant

range extends to 19,000 monthly passengers. Use the information to compute the following.

A. What is the contribution margin per passenger?

B. What is the contribution margin ratio?

C. Use the unit contribution margin to project operating income if monthly sales total $16,000 passengers.

D. Use the contribution margin ratio to project operating income if monthly sales revenue total is $520,000.

Answer rating: 100% (QA)

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