Classy Cruiseline offers nightly dinner cruises departing from several cities on the East Coast of...
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Classy 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 $80 per passenger. Classy Cruiseline's variable cost of providing the dinner is $40 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $240,000 per month. The company's relevant range extends to 12,000 monthly passengers. If Classy Cruiseline has a target operating income of $40,000 per month, how many dinner cruise tickets must the company sell? First, identify the formula, then compute the target sales in units. ++11== Contribution margin per unit Contribution margin ratio Fixed expenses Operating income Units sold Variable expenses
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