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FunTime Cruiseline offers nightly dinner cruises departing from several cities on the East Coast of the United States including Charleston, Baltimore, and Alexandria. Dinner cruise tickets sell for 50 per passenger. FunTime Cruiseline's variable cost of providing the dinner is 30 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is 210,000 per month. Under these conditions, the breakeven point in tickets is 10,500 and the breakeven point in sales dollars is 525,000. 1. Suppose FunTime Cruiseline cuts its dinner cruise ticket price from 50 to 45 to increase the number of passengers. Compute the new breakeven point in units and in sales dollars. Explain how changes in sales price generally affect the breakeven point. 2. Assume that FunTime Cruiseline does not cut the price. FunTime Cruiseline could reduce its variable costs by no longer serving an appetizer before dinner. Suppose this operating change reduces the variable expense from 30 to 20 per passenger. Compute the new breakeven point in units and in dollars. Explain how changes in variable costs generally affect the breakeven point. All else being constant, a decrease in sales price will decrease the contribution margin per unit and contribution margin ratio. The breakeven point will therefore increase. Assume that FunTime Cruiseline does not cut the price. FunTime Cruiseline could reduce its variable costs by no longer serving an appetizer before dinner. Suppose this operating change reduces the variable expense from 30 to 20 per passenger. Compute the new breakeven point in units and in dollars. Explain how changes in variable costs generally affect the breakeven point.