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Thepotemich [5.8K]
3 years ago
15

The cruise boat can carry up to 45 passengers. The company wants to know the minimum number of passengers needed per cruise to c

over its costs. This number is called the break-even point. A formula for calculating the break-even point is: Break-even point = (fixed costs) ÷ (income per passenger – costs per passenger) The company collects the following data: N3402-WhaleWatch.png
fixed price costs
Crew salaries 350
fuel 120
overheads 170
Variable costs per passenger
refreshments $ 6.50
refund $ 3.64
Sales income
Average ticket $ 36 .40
Mathematics
1 answer:
denpristay [2]3 years ago
3 0
Fixed price costs
Crew salaries            350
fuel                              120
overheads                  170
Total fixed cost:          640

Variable costs per passenger
refreshments           $ 6.50
refund                       $ 3.64
total variable cost:   10.14  

Sales income
<span>Average ticket      $ 36 .40

</span><span>Break-even point =   <u>                                 (fixed costs)                           </u>
                                    (income per passenger – costs per passenger) </span><span>

</span>
Break even =  640 / (36.40-10.14) = 640 / 26.26 = 24.37


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