Use the information from the Luxury Cruiseline Data Set. Draw a graph of Luxury Cruiseline's CVP relationships. Include the sales revenue line, the fixed expense line, and the total expense line. Label the axes, the breakeven point, the income area, and the loss area.
Luxury Cruiseline offers nightly dinner cruises off the coast of Miami, San Francisco, and Seattle. Dinner cruise tickets sell for $120 per passenger. Luxury Cruiseline's variable cost of providing the dinner is $48 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $270,000 per month. The company's relevant range extends to 15,000 monthly passengers.