loader  Loading... Please wait...

Question(s) / Instruction(s):

After successfully earning their MBA from Presidio, Time Zone Challenged decides to form their own cruise ship company based out of San Francisco.  Time Zone Challenged Journeys offers luxury trips along the Pacific Coast and to the Hawaiian Islands.                                

                               

Time Zone Challenged, dusting off some accounting materials, were able to determine the operating costs for a two-week cruise to Alaska, which would be a change from a three week cruise from travelling down to Guatemala.  Here are their estimates (based on 2,000 passengers per cruise and 25 cruises per year):           

PER CRUISE

 

 
 

Variable Costs

Fixed Costs

Labor

 $        750,000

 $       150,000

Food

           750,000

            75,000

Fuel

 

          650,000

Port fees and services

 

          125,000

Marketing, ads, promotion

 

          350,000

Supplies

           500,000

          150,000

Totals

 $     2,000,000

 $     1,500,000

Assuming that the two-week Alaskan cruise will be priced at $3,000 per passenger, please calculate the break-even number of passengers per cruise based on the data above.

Find Similar Answers by Subject


Student Reviews

Rate and review your solution! (Please rate on a Scale of 1 - 5. Top Rating is 5.)


Expert's Answer
Download Solution:
$2.00

This solution includes:

  • Plain text
  • Cited sources when necessary
  • Attached file(s)
  • Solution Document(s)



Reach Us

408-538-8534

20-3582-4059

39-008-4233

+1-408-904-6494