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8 part question Suppose Fun Time Cruiseline decides to offer two types of dinner Cruises regular cruises and executive cruises The executive cruise includes complimentary
8 part question
Suppose Fun Time Cruiseline decides to offer two types of dinner Cruises regular cruises and executive cruises The executive cruise includes complimentary cocktails and a five course dinner on the upper deck Assume that fixed expenses remain at $210.000 per month and that the following ticket prices and variable expenses apply en click the icon to view the ticket prices and expenses.) Assuming that FunTime Cruiseline expects to sell four regular cruises for every executive cruise, compute the weighted average contribution margin per unit is it higher or lower than a simple average contribution margin? (A simple average is calculated by adding both contribution margins per passenger together and dividing by two ) Why? Is it higher or lower than the regular cruise contribution margin of S202 Why? Will this new sales mix cause FunTime Cruiseline breakeven point to increase or decrease from what it was when it only sold regular cruises? Data Table Executive Cruise Regular Cruise $ 50 $ 100 Sale price per ticket.... Variable expense per passenger $ 30 $ 40 Print Done Step by Step Solution
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