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Topic: Business
Number of pages / Number of words: 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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