Author Question: Why are cruise destinations not anxious to upgrade port facilities? What will be an ideal response? (Read 211 times)

Tirant22 · **on:** Sep 11, 2019

Question 1

Explain what is meant by contribution to profitability in the restaurant industry.

What will be an ideal response?

Question 2

Why are cruise destinations not anxious to upgrade port facilities?

What will be an ideal response?

sarah_brady415 · **Reply #1 on:** Sep 11, 2019

Answer 1

If the marginal revenue received from a consumer exceeds the cost of producing that extra meal, then the restaurant will have earned a contribution toward profitability. This is an important reason for restaurants to stay open for longer hours since the fixed costs won't be changing and the extra costs will simply involve some extra labor and supplies and not much additional sales will be needed to cover those costs.

Answer 2

Destinations are not anxious to upgrade port facilities because disembarking cruise passengers tend not to spend much money while on shore. Also many destination cities lack the financial means to do so.