Luxury Cruiseline offers nightly dinner cruises off the coast of Nanaimo and Victoria. Dinner cruise tickets...

 

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Luxury Cruiseline offers nightly dinner cruises off the coast of Nanaimo and Victoria. Dinner cruise tickets sell for $80 per passenger. Luxury Cruiseline's variable cost of providing the dinner is $40 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $220,000 per month. The company's relevant range extends to 15,000 monthly passengers. The break-even units are 5,500 tickets sold. If Luxury Cruiseline sells 13,500 dinner cruises, compute the margin of safety a. in units (dinner cruise tickets) b. in sales dollars c. as a percentage of sales. a. Begin by determining the formula, and then compute the margin of safety in units (dinner cruise tickets). (Round your answer to the nearest whole number.) Margin of safety in units Luxury Cruiseline offers nightly dinner cruises off the coast of Nanaimo and Victoria. Dinner cruise tickets sell for $80 per passenger. Luxury Cruiseline's variable cost of providing the dinner is $40 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $220,000 per month. The company's relevant range extends to 15,000 monthly passengers. The break-even units are 5,500 tickets sold. If Luxury Cruiseline sells 13,500 dinner cruises, compute the margin of safety a. in units (dinner cruise tickets) b. in sales dollars c. as a percentage of sales. a. Begin by determining the formula, and then compute the margin of safety in units (dinner cruise tickets). (Round your answer to the nearest whole number.) Margin of safety in units

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Margin of safety units Sales unit Break even unit 1... View the full answer