Analyze Atlantis Cruise Lines

Atlantis Cruise Lines offers luxury, one-week cruise packages in the Greek Aegean Sea. The ship has a capacity for 1,200 people. Atlantis averages 1,000 passengers per cruise. The price per passenger is $6,000. Costs associated with a cruise are as follows:

Line Item Description	Amount
Variable costs per cruise:
Crew to serve passengers	$1,200,000
Food	1,500,000
Amenity and excursion	400,000
Total variable cost per cruise	$3,100,000
Fixed costs per cruise:
Crew to run ship	$1,500,000
Depreciation expense	120,000
Fuel	50,000
Total fixed cost per cruise	$1,670,000

Atlantis proposes an early booking program to help increase the number of passengers per cruise. Under the proposed early booking program, the first 300 passengers to book a cruise will receive a $1,500 discount off the normal price for the cruise. Atlantis expects this program to increase the number of passengers from 1,000 to 1,180 per cruise. The proposed booking program will be launched with $15,000 of advertising per cruise.

d1. Prepare a differential analysis showing the differential profit per cruise between the existing plan (Alternative 1) and the proposed early booking program (Alternative 2). If an amount is zero, enter "0".

Line Item Description	Existing Plan (Alternative 1)	Early Booking Program (Alternative 2)	Differential Effects (Alternative 2)
Revenues per cruise	$Revenues per cruise	$Revenues per cruise	$Revenues per cruise
Variable costs per cruise:	blank	blank	blank
Crew to serve passengers	$Crew to serve passengers	$Crew to serve passengers	$Crew to serve passengers
Food	Food	Food	Food
Amenity and excursion	Amenity and excursion	Amenity and excursion	Amenity and excursion
Advertising	Advertising	Advertising	Advertising
Total variable costs per cruise	$Total variable costs per cruise	$Total variable costs per cruise	$Total variable costs per cruise
Contribution margin per cruise	$Contribution margin per cruise	$Contribution margin per cruise	$Contribution margin per cruise