**FunTime Cruiseline Overview:**FunTime Cruiseline offers nightly dinner cruises departing from several cities on the east coast of the United States including Charleston, Baltimore, and Alexandria. Dinner cruise tickets sell for $50 per passenger. FunTime Cruiseline’s variable cost of providing the dinner is $30 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 20,000 monthly passengers.**S7-1 Compute unit contribution margin and contribution margin ratio**(Learning Objective 1)Use the information from the FunTime 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 contribution margin to project operating income if monthly sales total 17,000 passengers.d. Use the contribution margin ratio to project operating income if monthly sales revenue totals $595,000.

Formulas: Contribution margin per passenger = Sales price per passenger - Variable cost per…

east- FunTime Cruiseline offers nightly ern coast of the United States including Charleston, Baltimore, and Alexandria, Dinner cruise tickets sell for $50 per passenger. FunTime Cruiseline's variable cost of providing the dinner is $30 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 rel- evant range extends to 20,000 monthly passengers. Compute unit contribution margin and contribution margin ratio (Learning Objective 1) Use the information from the FunTime Cruiseline Data Set to compute the following: a. What is the contribution margin per passenger? p. What is the contribution margin ratio? = Use the unit contribution margin to project operating income if monthly sales too 17,000 passengers. 1. Use the contribution margin ratio to project operating income if monthly sales le enue totals $595,000.

east- FunTime Cruiseline offers nightly ern coast of the United States including Charleston, Baltimore, and Alexandria, Dinner cruise tickets sell for $50 per passenger. FunTime Cruiseline's variable cost of providing the dinner is $30 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 rel- evant range extends to 20,000 monthly passengers. Compute unit contribution margin and contribution margin ratio (Learning Objective 1) Use the information from the FunTime Cruiseline Data Set to compute the following: a. What is the contribution margin per passenger? p. What is the contribution margin ratio? = Use the unit contribution margin to project operating income if monthly sales too 17,000 passengers. 1. Use the contribution margin ratio to project operating income if monthly sales le enue totals $595,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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