Flow Cruiseline offers nightly dinner cruises off the coast of Miami, San Francisco, and Seattle. Dinner cruise tickets sell for $50 per passenger. Flow Cruiseline's variable cost of providing the dinner is $20 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $270,000 per month. The company's relevant range extends to 16,000 monthly passengers.
Use this information to compute the following:
(a) What is the contribution margin per passenger?
(b) What is the contribution margin ratio?
(c) What is the contribution margin per passenger?
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