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2 pages/≈550 words
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Subject:
Business & Marketing
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Coursework
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English (U.S.)
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Topic:

How Much Revenue Would Health Cruises Receive From Each Customer? (Coursework Sample)

Instructions:

1. What is the minimum number of passengers Health Cruises must sign up by November 20th to break even?  [show your Break Even calculations]

2. Should Health Cruises go ahead with the cruise since 200 people have signed up by November 14th?  Why or why not?

3. The advertising agency has proposed two alternative campaigns to help fill the boat.  One will cost $60,000 and the other would cost $150,000.  Which would you suggest? [again, show your Break Even calculations].

4. Should Health Cruises consider cutting its prices for new last-minute customers of this trip?  Why or why not?  What other factors could impact the go/no-go decision in addition to the break even?

5. Starting with the next cruise, Health Cruises has been approached by the On-a-Whim Agency to act as a travel agent and representative in booking the Health Cruise. On-a-Whim requires a 20% gross margin and Health Cruises fixed costs will remain the same due to on-going expenses and advertising.

a. How much revenue would Health Cruises receive from each customer?

[Hint – You must factor in the On-a-Whim margin.]

b. What is the new break-even [show your Break Even calculations]?

c. Would you recommend that Health Cruises hire On-a-Whim and why or why not?

source..
Content:

Name
Professor
Course
Date
Case Questions
What is the minimum number of passengers Health Cruises must sign up by November 20th to break even? [Show your Break Even calculations]
The minimum number of passengers required is 480 in order to break even by the November 20th.
The formula is; fixed cost expenses/ contribution margin percentage
Fixed cost amounted to $2,500,000
Contribution percentage was 50%.
This simply means that the health cruises attains a break-even sale of $200,000 per month.
2. Should Health Cruises go ahead with the cruise since 200 people have signed up by November 14th? Why or why not?
I agree that the health cruises should go ahead with their cruise since the 200 people who had already signed up is a good number, to begin with, though it was down to Pittsford and Larue's expectation. Deciding to kick on with this number might seem like a wrong turn, but to me, it's worth taking a short because in the long run a bunch of other people might join in the cruise after observing how the activities are faring on. Most people actually prefer watching the outcomes and then later reevaluate their stand so to this matter at hand I confidently give the green lights for the recruitment of more passengers to the ship expecting a major turn up of more people.
The advertising agency has proposed two alternative campaigns to help fill the boat. One will cost $60,000, and the other would cost $150,000. Which would you suggest? [Again, show your Break Even calculations].
I would f

...
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