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Business
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2 / 461 |
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Do not however tell the people who have already paid.
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Fixed Cost = 220000+10000+65000 = 295000
Variable cost per passenger = 200
Revenue = 1500 per passenger X # of passengers (# of passengers = x)
Revenue – Cost = Profit
1500x – (200x+295000) = 0
x = 226.92 rounded up to 227 passengers to break even
2. Should Health Cruises go ahead with the cruise since 200 people have signed up by November 14th?
IF the $220,000 boat rental is non-refundable, then there are only 2 options...
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