Break-even number of passengers for a cruise Ocean Escape Cruise Lines has a boat with a capacity of 1,200 passengers. An eight-day ocean cruise involves the following costs: Crew $240,000 Fuel 60,000 Fixed operating costs 800,000 The variable costs per passenger for the eight-day cruise include the following: Meals $900 Variable operating costs 400 The price of the cruise is $2,400 per passenger. a. Determine the break-even number of passengers for the eight-day cruise.

Break-even number of passenger= 1,000

Explanation:

The break sales in units is the number of units of a product/clients to be sold/served in order for the total cost to be equal to total revenue. At the break-even point total contribution is exactly equal to total fixed cost. No profit or loss is made.

The break-even point = Total general fixed cost/contribution per passenger

Contribution per passenger = price - variable cost

= 2,400- (900+400)= 1,100

Break-even number of passenger = (240,000+60,000+800,000)/1100

                                                    =  1,100,000/1,100= 1,000 passengers

Break-even number of passenger= 1,000

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.