Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assuming that Luxury Cruiseline expects to sell four reguiar oruises for every axecutive cruise, compute the weighted-average contribution margin per unit is it higher or

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Assuming that Luxury Cruiseline expects to sell four reguiar oruises for every axecutive cruise, compute the weighted-average contribution margin per unit is it higher or lower than a simple average contribution margin? (A simple average is calouiated by adding both contribution margins per passenger together and dividing by two.) Why? is it higher or lower than the regular cnuise contributon margin of $407 Why? Wl this new sales mix cause Luxury Cruiseline's breakeven point to increase or decrease from what it was when it only sold regular cruises? Suppose Luxury 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 $360,000 per month and that the following Scket prices and variable expenses apply (Clck the lcon to view the Sicket prices and expenses) Executive Cruise Regular Cruise 160 Sale price per.ticket.. $ 80 80 40 Variable expense per passenger. Assuming that Luxury Cruiseline expects to sell four regular cruises for every one executive cruise, compute the weighted-average contribution margin per unit Detemine the formula, then complete the table one section at a time. Regular Executive Total Less Weighted-average contribution margin per unit A simple average contribution margin would be S is the weighted-average contribution margin higher or lower than a simple average contribution margin? contribution margin, than executive cruises regular cruises, which have a the simple average because Luxury Cruiseline sels The weighted-average is is the weighted-average contribution margin higher or lower than the regular onse contribution margin of $407 Why? than the contribution magin of regular cruises because Luxury Cruiseline sells some executive cruises, and they have a The weighted-average contrbution margin is contribution margin than regular cruises Will this new sales mix cause Luxury Cruiseine's breakeven point to increase of decrease from what it was when it only sold regular onuises? Because the new sales mix creates a weighted average contribution margin, Luxury Cruiseine will need to sell oruises, in total, to breakeven than when they just sold regular cruises Choose from any ist or enter any number in the input fields and then continue to the next

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Art Of Safety Auditing A Tutorial For Regulators

Authors: Sasho Andonov

1st Edition

0367351080, 978-0367351083

More Books

Students also viewed these Accounting questions

Question

1. Identify three approaches to culture.

Answered: 1 week ago

Question

2. Define communication.

Answered: 1 week ago

Question

4. Describe how cultural values influence communication.

Answered: 1 week ago