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Question - Flow 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 $50 per passenger. ?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 $270,000 per month. The? company's relevant range extends to 15,000 monthly passengers.
a. What is the contribution margin per? passenger?
b. What is the contribution margin? ratio?
c. Use the unit contribution margin to project operating income if monthly sales total 12,000 passengers.
d. Use the contribution margin ratio to project operating income if monthly sales revenue totals $520,000.
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