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Sales Variable Costs - Fixed Costs = Income Fixed Costs + Target Profit Contribution Margin/Unit Activity #3 CVP Multi-product Chapter 7 CVP Analysis Fixed

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Sales Variable Costs - Fixed Costs = Income Fixed Costs + Target Profit Contribution Margin/Unit Activity #3 CVP Multi-product Chapter 7 CVP Analysis Fixed Costs + Target Profit Contribution Margin Ratio Suppose Bay 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 as listed. Regular Cruise Executive Cruise $50 Sales price per ticket Variable expense per passenger $20 $130 $40 o. Assuming that Bay Cruiseline expects to sell four regular cruises for every executive cruise, compute the weighted-average contribution margin per unit. p. Compute the total number of dinner cruises that Bay Cruiseline must sell to break-even.

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