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JulijaS [17]
3 years ago
11

Flow Cruiseline offers nightly dinner cruises off the coast of​ Miami, San​ Francisco, and Seattle. Dinner cruise tickets sell f

or $50 per passenger. Flow ​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 16,000 monthly passengers.
Use this information to compute the​ following:
(a) What is the contribution margin per passenger?
(b) What is the contribution margin ratio?
(c) What is the contribution margin per passenger?
Business
1 answer:
garri49 [273]3 years ago
3 0

Answer:

(a) Contribution Margin = $30 per passenger

(b) Contribution Margin Ratio = 60%

(c) Contribution Margin = $30 per passenger

Explanation:

Contribution margin is the net of sales and all the variable costs. It is the portion of sales which not used by variable costs and available for settlement of fixed cost and makes profit after that.

Contribution Margin = Selling price - variable cost

Contribution Margin = $50 - $20

Contribution Margin = $30 per passenger

Contribution margin ratio = Contribution Margin / Sales

Contribution margin ratio = $30 / $50

Contribution margin ratio = 60%

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s344n2d4d5 [400]

When you think about calculating your small business's success, you ought to see how much revenue it produces. Obviously, when you are running a corporation, money is necessary. Your business is done without it. You will expand your company with it and continue to follow your entrepreneurial dream.

During a given time frame, the financial statement tests the success of your firm by displaying the gains and expenses of your corporation. The balance sheet reflects the financial stability of the organisation, calculating how much you owe and own. And the declaration of cash flow indicates how liquid cash is at the business.

Measuring market efficiency involves testing the company's cash flow. Check out the financial statements if you want to see how profitable the company is.

A perfect way to assess the success of your company and forecast progress is to know how many new clients you have. You might need to kick up your marketing campaign if your company is static with the same 25 clients.

See if current consumers are the ones buying from your firm. Create a customer list to manage clients with email addresses. That way, every month or year, you can easily count the number of new customers.

Learn more about business here

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6 0
2 years ago
In a free enterprise system the decisions about what and how many goods and services will be produced are made by?
snow_lady [41]

Answer:

Private individuals.

Explanation:

In a free enterprise system, the decisions about what and how many goods and services will be produced are made by private individuals.

Free enterprise system is an economic system in which the ownership and control of means of production (resources) and distribution of goods and services are determined by private individuals. Here, private individuals decide what, how and for whom to produce while the government does not interfere in economic activities. The allocation of resources and price determination are influenced by the forces of demand and supply called price mechanism, which Adam Smith referred to as 'Invisible Hand'.

Free enterprise system is also known as Capitalist economy, Capitalism and Free market system. Countries that practice more of free enterprise system are Singapore, New Zealand, Hong Kong, Australia and Switzerland.

5 0
3 years ago
Perpetuities are also called annuities with an extended, or unlimited, life. Based on your understanding of perpetuities, answer
Oduvanchick [21]

Answer:

d. A perpetuity is a stream of regularly timed, equal cash flows that continues forever.

Explanation:

A perpetuity refers to a future stream of cash flows, paying a constant amount regularly till forever. Such stream is never ending.

The present value of a perpetuity is computed by dividing the constant amount receivable till forever, by required rate of return/cost of capital.

Present value of a growing perpetuity is given by

= \frac{Cash\ Flow(1\ +\ g)}{r\ -\ g}

wherein cash flows represent cash flows receivable growing at g% rate till forever

r = required rate of return or cost of capital

g= growth rate of cash flows

Where the cash flows are of constant amount i.e non growing nature, the present value of such a perpetuity is given by,

= \frac{Cash\ Flows}{Required\ rate\ of\ return}

3 0
3 years ago
_______ is the phenomenon of the shifting of individual management styles to become more similar to one another.
Minchanka [31]

Answer:

Convergence

Explanation:

Convergence meaning that the two different entities are coming together. It is also defined as the tendency of the group members to become more alike. It is also known as the company culture, in the sense, that the people who work there, tend to have the similar characteristics.

Therefore, the convergence is the phenomenon which states the shifting of the styles of the individual management in order to become more similar to one another.

3 0
3 years ago
According to low estimates, we see advertisements every _____ minutes.
QveST [7]

Answer:

4

Explanation:

Its every 4 mins we see ads

8 0
3 years ago
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