How many dinner cruise tickets must the company sell

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Question - Classy Cruiseline offers nightly dinner cruises off the coast of Nanaimo and Victoria. Dinner cruise tickets sell for $50 per passenger. Classy Cruiseline's variable cost of providing the dinner is $20 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $207,000 per month. The company's relevant range extends to 20,000 monthly passengers. If Classy Cruiseline has a target operating income of $100,000 per month, how many dinner cruise tickets must the company sell? First, identify the formula, and then compute the target sales in units.

Reference no: EM133092478

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