Question: Use the information from the Crystal Cruiseline Data Set. a. Compute the operating leverage factor when Crystal Cruiseline sells 8,750 dinner cruises. b. If volume

Use the information from the Crystal Cruiseline Data Set.
a. Compute the operating leverage factor when Crystal Cruiseline sells 8,750 dinner cruises.
b. If volume increases by 10%, by what percentage will operating income increase?
c. If volume decreases by 5%, by what percentage will operating income decrease?

Crystal Cruiseline Data
Crystal Cruiseline offers nightly dinner cruises off the coast of Miami, San Francisco, and Seattle. Dinner cruise tickets sell for $ 50 per passenger. Crystal 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 14,000 monthly passengers.

Step by Step Solution

★★★★★

3.45 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Contribution margin 8750 30 cruise passenger 262500 Less Fixed expenses 210000 ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

322-B-M-A-C-V-P (1788).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Use the information from the Crystal Cruiseline Data Set to compute the following: a. What is the contribution margin per passenger? b. What is the contribution margin ratio? c. Use the unit...

Use the information from the Crystal Cruiseline Data Set to compute the number of dinner cruise tickets it must sell to breakeven and the sales dollars needed to breakeven. Crystal Cruiseline Data...

Use the information from the Crystal Cruiseline Data Set. Suppose Crystal Cruiseline embarks on a cost reduction drive and slashes fixed expenses from $ 210,000 per month to $ 180,000 per month. 1....

Use the information from the Luxury Cruiseline Data Set. a. Compute the operating leverage factor when Luxury Cruiseline sells 12,000 dinner cruises. b. If volume increases by 10%, by what percentage...

Use the information from the Northern Cruiseline Data Set. a. Compute the operating leverage factor when Northern Cruiseline sells 12,000 dinner cruises. b. If volume increases by 10%, by what...

Question list Question 7 Question 8 Question 9 Question 10 Question 11 Question 12 Question 13 Question 14 Question 15 Question 16 per month. The company's relevant range extends to 14,000 monthly...

per passenger. Super Cruiseine's variable cost of providing the dinner is $20 per passenget, and the fixed cont of cperating the vessels (depceciation, salares, doekng lees, and other eupersae) is...

Use the information from the Crystal Cruiseline Data Set. If Crystal Cruiseline sells an additional 600 tickets, by what amount will its operating income increase (or operating loss decrease)?...

Use the information from the Royal Hellenic Cruiseline data set. a. Compute the operating leverage factor when Royal Hellenic Cruiseline sells 12,000 dinner cruises. b. If volume increases by 10%, by...

Use the information from the Crystal Cruiseline Data Set. 1. Suppose Crystal Cruiseline cuts its dinner cruise ticket price from $ 50 to $ 40 to in-crease the number of passengers. Compute the new...

Company Friends Inc. is expected to grow indefinitely at a constant rate of 10%. Its cost of capital equals 5%. If it will pay a dividend of 5 per share next year, what is the fair price of its...

Explain the difference between saving and investment as defined by a macroeconomist. Which of the following situations represent investment? Saving? Explain. a. Your family takes out a mortgage and...

answer this Multiple Select Question Select all that apply Financing cash flows include which of the following transactions? O purchase of equipment [0 collection of dividends [0 issuance of a note...

A trust that is established by a will is called: (a) a revocable trust. (b) an irrevocable trust. (c) an inter vivos trust. (d) a testamentary trust.

The contribution margin income statement of Liberty Coffee for July follows: Liberty Coffee sells three small coffees for every large coffee. A small coffee sells for $3.00, with a variable expense...

Caesars Palace Las Vegas made headlines when it undertook a $75 million renovation. In mid-September 2015, the hotel closed its then-named Roman Tower, which was last updated in 2001, and started a...

Horner Work Wear, Inc., supplies uniforms for a variety of businesses. Collin Hoffman is a new intern in the Accounting Department at Horner. To expand sales, the company is considering paying...

Alan is trying to determine the best way to construct a paper airplane. They are using the factors Paper type (heavy(+1), and light(-1), and Design (Starwing(+1), and Basic(-1)). They ran their...

3- Write a C program that: a. Takes two names. b. Swaps the names. c. Prints the names before and after swapping

The Miller Milk Company has just come up with a new lactose-free dessert product for people who can't eat or drink ordinary dairy products. Management expects the new product to fuel sales growth at...