Professor Elam

Sat Oct 8, 2011

Here is a short article on filling the cabins on a cruise lines.

Indeed once the ship has enough passengers to cover the fixed costs, the remaining cabins can be rented as long as there is a contribution above the variable cost, ie, how much to feed the passengers. All the other costs of entertainment and just cruising the ship are fixed costs. We will study this later in ACCT 3301.