Question: Chapter 7 CVP Analysis Sales - Variable Costs - Fixed Costs = Income Fixed Costs + Target Profit Fixed Costs + Target Profit Contribution Margin/Unit

Chapter 7 CVP Analysis Sales - Variable Costs - Fixed Costs

Chapter 7 CVP Analysis Sales - Variable Costs - Fixed Costs = Income Fixed Costs + Target Profit Fixed Costs + Target Profit Contribution Margin/Unit Contribution Margin Ratio Activity \#2 - Changing Business Conditions-Sensitivity Analysis Bay Cruiseline offers nightly dinner cruises off the coast of Miami, San Francisco, and Seattle. Dinner cruise tickets sell for $50 per passenger. Bay 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 15,000 monthly passengers. h. How do changes in sales price affect the breakeven point? i. Suppose Bay 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

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