Use the information from the Crystal Cruiseline Data Set 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 11,000 passengers.
d. Use the contribution margin ratio to project operating income if monthly sales revenue totals $ 490,000.
Crystal Cruiseline Data
Crystal Cruiseline offers nightly dinner cruises off the coast of Miami, San Francisco, and Seattle. Dinner cruise tickets sell for $ 50 per passenger. Crystal Cruiseline’s variable cost of providing the dinner is $ 20 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $ 210,000 per month. The company’s relevant range extends to 14,000 monthly passengers.