Question: Changes in fixed costs (Learning Objective 3) Use the information from the Bay Cruiseline Data Set. Suppose Bay Cruiseline embarks on a cost-reduction drive and

Changes in fixed costs (Learning Objective 3) Use the information from the Bay Cruiseline Data Set. Suppose Bay Cruiseline embarks on a cost-reduction drive and slashes fixed expenses from $275,000 per month to $200,000 per month. 1. Compute the new breakeven point in units and in sales dollars. 2. Is the breakeven point higher or lower than in S7-3? Explain how changes in fixed costs generally affect the breakeven point.

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