Starting with the next cruise, Health Cruises has been approached by the On-a-Whim Agency to act as
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Question:
Starting with the next cruise, Health Cruises has been approached by the On-a-Whim Agency to act as travel agent and representative in booking the Health Cruise. On-a-Whim requires a 20% margin and Health Cruises fixed costs will remain the same due to on-going expenses and advertising.
a. How much revenue would Health Cruises receive from each customer?
[Hint – You must factor in the On-a-Whim margin.]
b. What is the new break even [show your Break Even calculations].
c. Would you recommend that Health Cruises hire On-a-Whim and why or why not?
Related Book For
Contemporary financial management
ISBN: 9780324289114
10th Edition
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
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