Rainbow cruises operates a week-long cruise tour through

Assignment Help Accounting Basics

Reference no: EM13582673

Rainbow Cruises operates a week-long cruise tour through the Hawaiian Islands. Passengers currently pay $1,800 for a two-person cabin, which is an all-inclusive price that includes food, beverages, and entertainment.The current cost to Rainbow per two-person cabin is $1,440 for the week-long cruise, and at this cost, Rainbow is able to earn the minimum profit margin needed to operate the business. Rainbow competes with two other cruise lines and, to date, $1,800 has been the prevailing market price for the week-long cruises. Each cruise line provides exactly the same services to their passengers, but recently one of Rainbow's competitors found a way to permanently lower its price to $1,500 per two-person cabin.

Reference no: EM13582673

Questions Cloud

What is the probability that a random sample of 100 medium : question suppose that the medium coffees sold by a certain coffee shop have a mean volume of 16 ounces and a standard

Sycamore company uses a certain part in its manufacturing : sycamore company uses a certain part in its manufacturing process that it buys from an outside supplier for 29 per part

Specify a model for housing starts that accounts for : suppose you have quarterly data on new housing starts interest rates and real per capita income. specify a model for

Suppose the random variable x measures the rate of return : suppose the random variable x measures the rate of return on a single investment. what is the significance of the

Rainbow cruises operates a week-long cruise tour through : rainbow cruises operates a week-long cruise tour through the hawaiian islands. passengers currently pay 1800 for a

Beginning inventory 5000 units that are 100 complete as to : the detailing department of jackson manufacturing company has the following production and manufacturing cost data for

A popoular size of scuba diving take is 712 ft3 because : a popoular size of scuba diving take is 71.2 ft3 because this is the volume that the compressed air inside the tank

Under which three gauss-markov assumptions is the ols : 1. derive algebraically the inflation-adjusted one-period simple asset return formula.2. suppose the random variable x

If east is operating at less than full capacity what would : musc company has two divisions south and east. south produces a unit that east could use in its production. east

User Account

All Pages