MANAGER: This cruise needs to make more money. I would like to know how
much our profits would be if we reduce our variable costs by $10 per passenger
while maintaining our current passenger volume. Also marketing claims that if we
increase advertising expenditures by $500,000 and cut fares by 20 percent, we
can increase the number of passengers by 30 percent. I would like to know
which approach offers the most profit, or if a combination of the approaches may
be best.
Required:
1. Describe each of the four managerial responsibilities.
2. Identify the managerial activity or activities applicable for each scenario, and indicate the role of accounting information in the activity.