Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. break-even with opportunity costs 25% cos

Break-even with Opportunity Costs 25% Cost...

70.2K

Verified Solution

Question

Accounting

Break-even with Opportunity Costs 25%
Cost Behavior 25%
Multiple Product Break-even 25%
NPV (extra credit) 15%
Sunk Costs 25%
115%
Guatemala. Here are their estimates (based on 2,000 passengers per cruise and 25 cruises per year):
PER CRUISE
Variable Costs Fixed Costs
Labor 750,000 150,000
Food 750,000 75,000
Fuel 650,000
Port fees and services 125,000
Marketing, ads, promotion 350,000
Supplies 500,000 150,000
Totals 2,000,000 1,500,000
a. Assuming that the two-week Alaskan cruise will be priced at $2,000 per passenger, please calculate
the break-even number of passengers per cruise based on the data above.
b. What do the Lincoln Alumni need to consider beyond these estimates, and if they included this consideration,
what would happen to the break-even point? Would there be an issue if the max capacity of the ship was 2000 passengers?
HINT: Please calculate the OPPORTUNITY COST and compare against its capacity.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Chemistry
1.2K views

Part A The Haber process is typically carried out at a temperature of approximately 500∘C. What...

Medical Sciences
1.2K views

How does your body alter driving pressure? Do you think altering pressure is more or less...

Programming
1.2K views

In C, create a program that displays the minimum and maximum values stored in a data...

Basic Math
1.2K views

How does gender and occupational prestige affect credibility? Graduate students in a public health program are...

Biology
1.2K views

11 In the Lineweaver Burk A y intercept C negative reciprocal of the x intercept...

Biology
1.2K views

3 Compare examples of modern evidence of evolution a Describe how fossils of extinct organisms...

Physics
1.2K views

Heat required to heat water from 0 C to 20 C Total heat required Solution...

Geometry
1.2K views

An oblique triangular pyramid has a base area of 15 square units and a volume...

Accounting
1.2K views

Sheridan earned $3,000 in wages, incurred $1,000 in unreimbursed employee business expenses, paid $400 as...

Accounting
1.2K views

2. Provide 5 qualitative (non-financial) considerations that may influence your decision either to accept or...

Accounting
1.2K views

Presented below are selected ledger accounts of Oriole Corporation as of December 31, 2025. (a)...

Accounting
1.2K views

Marigold Leasing Company agrees to lease equipment to Swifty Corporation on January 1, 2020. The...