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julia-pushkina [17]
4 years ago
13

FunTime Cruiseline offers nightly dinner cruises departing from several cities on the eastern coast of the United States includi

ng Charleston, Baltimore, and Alexandria. Dinner cruise tickets sell for $50 per passenger. FunTime Cruiseline's variable cost of providing the dinner is $30 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $210,000 per month. The company's relevant range extends to 20,000 monthly passengers If FunTime Cruiseline has a target operating income of $30,000 per month, how many dinner cruise tickets must the company sell? First, identify the formula, then compute the target sales in units.
Business
1 answer:
Contact [7]4 years ago
3 0

Answer:

the target sales in units is 12,000 dinner cruise tickets

Explanation:

For FunTime Cruiseline to reach its target operating income of $30,000, it must first break -even then make a profit to the extent of $30,000.

This statement is presented in the formula below :

Target Sales - Units = (Fixed Cost + Target Profit) / Contribution per Unit

                                  = ($210,000+$30,000)/( $50 - $30)

                                  = $ 240,000/ $ 20

                                  =  12,000

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3 0
3 years ago
Radiant Industries sales budget shows quarterly sales for the next year as​ follows: Quarter 1dash15 comma 000​; Quarter 2dash13
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Answer:

Total= 13,800 units

Explanation:

Giving the following information:

Quarter 1: 15,000 units

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Total= 13,800 units

7 0
3 years ago
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