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natita [175]
3 years ago
5

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:
Fixed cost (per cruise)
CREW SALARY $350
FUEL $120
OVERHEADS $170

Varible costs( per passenger)
REFRESHMENTS $6.50
REFUND $3.64

SALES INCOME (PER PASSENGER)
AVERAGE TICKET INCOME $36.40

Based on this data, what is the minimum number of passengers needed per cruise, so that the cruise company can be sure it will make a profit?
Mathematics
1 answer:
aksik [14]3 years ago
3 0
Fixed costs:
$350 + $120 + $170 = $640
Variable costs:
x * ( $6.50 + $3.64 ) = x * 10.14
Sales income ( total ):
x * $36.40
FC + FV - Income = 0
640 + 10.14 x - 36.40 x = 0
640 - 26.26 x = 0
26.26 x = 640
x = 640 : 26.26 = 24.37
Answer:
The minimum number of passengers needed per cruise, so that the cruise company can be sure it will make a profit is 25. 
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