Question

Use the information from the Northern Cruiseline Data Set.
1. Suppose Northern Cruiseline cuts its dinner cruise ticket price from $50 to $40 to increase the number of passengers. Compute the new break-even point in units and in sales dollars. Explain how changes in sales price generally affect the break-even point.
2. Assume that Northern Cruiseline does notcut the price. Northern Cruiseline could reduce its variable costs by no longer serving an appetizer before dinner. Suppose this operating change reduces the variable expense from $20 to $10 per passenger. Compute the new break-even point in units and in dollars. Explain how changes in vari- able costs generally affect the break-even point.


$1.99
Sales0
Views56
Comments0
  • CreatedApril 30, 2015
  • Files Included
Post your question
5000