Answer: 227 passengers
Explanation:
The number of Passengers needed to breakeven is calculated by dividing the fixed costs by the contribution margin.
Fixed costs are;
= 65,000 + 10,000 + 220,000
= $295,000
The cost of maintaining the passengers (variable costs) = $200
The amount paid per passenger is $1,500 on average
Breakeven point = 295,000 / ( 1,500 - 200)
= 227 passengers
