Suppose FunTime Cruiseline cuts its dinner cruise ticket price from $50 to $45 to in- crease the number of passengers. Compute the new breakeven point in units and in sales dollars. Explain how changes in sales price generally affect the breakeven point. Assume that FunTime Cruiseline does not cut the price. FunTime Cruiseline could re- duce its variable costs by no longer serving an appetizer before dinner. Suppose this operating change reduces the variable expense from $30 to $20 per passenger. Com- pute the new breakeven point in units and in dollars. Explain how changes in variable costs generally affect the breakeven point.
Suppose FunTime Cruiseline cuts its dinner cruise ticket price from $50 to $45 to in- crease the number of passengers. Compute the new breakeven point in units and in sales dollars. Explain how changes in sales price generally affect the breakeven point. Assume that FunTime Cruiseline does not cut the price. FunTime Cruiseline could re- duce its variable costs by no longer serving an appetizer before dinner. Suppose this operating change reduces the variable expense from $30 to $20 per passenger. Com- pute the new breakeven point in units and in dollars. Explain how changes in variable costs generally affect the breakeven point.
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 12EB: Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month...
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