Find how many dinner cruise tickets must the company sell

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Reference no: EM132794028

Problem 1: Northern Cruiseline offers nightly dinner cruises off the coast of Nanaimo and Victoria. Dinner cruise tickets sell for $80 per passenger. Northern 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 $200,000 per month. The company's relevant range extends to 20,000 monthly passengers. If Northern Cruiseline has a target operating income of $130,000 per month, how many dinner cruise tickets must the company sell?

Reference no: EM132794028

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