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Suppose Flow Cruiseline decides to offer two types of dinner cruises: regular cruises and executive cruises. The executive cruise includes complimentary cocktails and a
Suppose Flow 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 Regular Cruise Executive Cruise Sale price per ticket...... $ 50 $ 100 Variable expense per passenger.. 20 40 Accuma that in the month of Annil El Cnsenline end an ronular mice and 1 500 avandie ensiege and that Can of the fivad nnete area K Sale price per ticket....... Variable expense per passenger.. $ Regular Cruise 50 20 $ Executive Cruise 100 40 Assume that in the month of April, Flow Cruiseline sold 8,000 regular cruises and 4,500 executive cruises and that $82,000 of the fixed costs are traceable to regular cruises while $90,000 of the fixed costs are traceable to executive cruises. Prepare a segmented income statement using the contribution margin format Prepare a segmented income statement using the contribution margin format. Flow Cruiseline Income Statement (Segmented) Month Ended April 30 Units Regular Executive Total
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