Please read the case and answer the questions at the end.
Questions 1 What is the minimum number of passengers that Health Cruises must sign up by November 20 to break even with the cruise? (Show your calculations.) 2 Should Health Cruises go ahead with the cruise, since 200 passengers had signed up as of November 14? 3 Would it be worthwhile for Health Cruises to spend either $6,000 or $15,000 for advertising on November 20? If so, which figure would you recommend? 4 How realistic are Carolyn Sukhan’s estimates of 20 more passengers for the $6,000 advertising campaign and 40 more passengers for the $15,000 campaign? 5 Should Health Cruises consider cutting its prices for this maiden voyage health cruise?
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