Initial Cost:$1.$ Initial advertising budget $=650002.$ Administrative expenses $=100003.$ Ship rental $=220000$Total Investment$=295000$Revenue per passenger $=1500$Variable Cost per passenger$=200$Total earning per passenger$=1300$Total registrations till now$=200$Answer $1$:Breakeven calculations:n$=$ no$.$ of passengers needed for breakevenTotal investment $=$ n$*($revenue per person$-$ cost per person$)295000=$ n$*(1500-200)$n$=295000/1300$n$=226\mathrm{.}92$n$=227($approx$)$Answer $2$:Yes health cruises should go ahead with the cruise as they have already invested some amount of $$75000$ for advertising and adminitrative expenses and this sum cannot be recovered $.$And if it goes to cruze with $200$ passengers the amount recovered will be as follows:$=200*(1500-200)=200*1300=$$$260000$so it will be a loss of only $$35000$ rather than $$75000$hence company should go with the cruiseAnswer $3$:option $1$: if it spends $$6000$ on advertising and $20$ more passenger come then profit from this sceheme is as follows:incremental passsengers:$20$Incremental profit: $1300$Total incremental revenue: $1300*20=26000$Total costs advertising : $6000$Total incremental profit : $26000-6000=$$$20000$option $2$: if it spends $$15000$ on advertising and $40$ more passenger come then profit from this sceheme is as follows:incremental passsengers:$40$Incremental profit: $1300$Total incremental revenue: $1300*20=52000$Total costs advertising : $15000$Total incremental profit : $52000-15000=$$$37000$So option $2$ is better as it is giving extra incremental profit and is also helping in achieving breakevenAnswer $4$:the estimates are quite realsitic as for $20$ passengers advertisment cost is $$300/$per passenger$($$$6000/20)$ and for $40$ passengers is $$350/$passenger$($$$15000/40)$ and company initial cost was $$325/$passener$($$$65000/200)$