Super Cruiseline offers nightly dinner cruises departing from several cities on the eastern coast of the United States including​ Charleston, Baltimore, and Alexandria. Dinner cruise tickets sell for $80 per passenger. Super ​Cruiseline's variable cost of providing the dinner is $40 per​ passenger, and the fixed cost of operating the vessels​ (depreciation, salaries, docking​ fees, and other​ expenses) is $240,000 per month. The​ company's relevant range extends to 14,000 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. Use the unit contribution margin to project operating income if monthly sales total11,000 passengers. d. Use the contribution margin ratio to project operating income if monthly sales revenue totals $515,000.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6EA: Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of...
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Super Cruiseline offers nightly dinner cruises departing from several cities on the eastern coast of the United States including​ Charleston, Baltimore, and Alexandria. Dinner cruise tickets sell for $80 per passenger. Super ​Cruiseline's variable cost of providing the dinner is $40 per​ passenger, and the fixed cost of operating the vessels​ (depreciation, salaries, docking​ fees, and other​ expenses) is $240,000 per month. The​ company's relevant range extends to 14,000 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. Use the unit contribution margin to project operating income if monthly sales total11,000 passengers.
d. Use the contribution margin ratio to project operating income if monthly sales revenue totals $515,000.
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