Can you solve this general accounting question with the appropriate accounting analysis techniques? Sunset Cruises offers evening boat tours for $220 per person. Theirvariable costs are $85 per person, and they have annual fixed costsof $960,000. How many cruises must they sell each month to breakeven?

Step 1: Definition of Break-Even PointThe break-even point is the level of sales at which total…

Answered: Sunset Cruises offers evening boat…

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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Sunset Cruises offers evening boat tours for $220 per person. Their variable costs are $85 per person, and they have annual fixed costs of $960,000. How many cruises must they sell each month to break even?