Funtime Cruise line offers nightly dinner cruises departing from several cities including Charleston, Baltimore, and Alexandria dinner cruise tickets sale for $50 per passenger. Funtime Cruise line variable cost of providing the dinner is $30 per passenger and the fixed cost of operating the vessels (depreciation, salaries, docking fees, etc. is $210,000 per month.) The company's relevant range extends to 20,000 monthly passengers.
A.) what is the contribution margin per passenger? First identify the formula then compute contribution margin per passenger.
B.) what is the contribution margin ratio?
C.) use the unit contribution margin to project operating income if monthly sales total 17,000 passengers.
D.) use the contribution margin ratio to project operating income if monthly sales revenue totals $595,000