Suppose Caast 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 $270,000 per month and that the following ticket prices and variable expenses apply:

Assuming that Coast 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 $30?

Why? Will this new sales mix cause CoastCruise line's breakeven point to increase or decrease from what it was when it only sold regular cruises?

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Suppose Coast 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 $270,000 per month and that the following ticket prices and variable expenses apply: (Click the icon to view the ticket prices and expenses.) Assuming that Coast 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 $30 ? Why? Will this new sales mix cause Coast Cruiseline's breakeven point to increase or decrease from what it was when it only sold regular cruises