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

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.