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: Click the icon to view the ticket prices and expenses.) Assuming that Flow 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 Flow Cruiseline's breakeven point to increase or decrease from what it was when it only sold regular cruises? Assuming that Flow Cruiseline expects to sell four regular cruises for every one executive cruise, compute the weighted-average contribution margin per unit. Determine the formula, then complete the table one section at a time Regular Executive Total |(1) Less (2) (3) (4) (5) Weighted average contribution margin per unit A simple average contribution margin would be $ Is the weighted-average contribution margin higher or lower than a simple average contribution margin? contribution margin The weighted-average is (6) the simple average because Flow Cruiseline sells (7) regular cruises, which have a (8) than executive cruises Is the weighted average contribution margin higher or lower than the regular cruise contribution margin of $30? Why? The weighted-average contribution margin is (9) than the contribution margin of regular cruises because Flow Cruiseline sells some executive cruises, and they have a (10) contribution margin than regular cruises Will this new sales mix cause Flow Cruiseline's breakeven point to increase or decrease from what it was when it only sold regular cruises? Because the new sales mix creates a (11) when they just sold regular cruises weighted average contribution margin, Flow Cruiseline will need to sell (12) cruises, in total, to breakeven than 1: Data Table Executive Cruise Regular Cruise 50 ...s $ 130 Sale price per ticket Variable expense per passenger 20 40 O Sales mix O Variable cost per ticket O Sales mix O Variable cost per ticket (1) O Contribution margin O Contribution margin per ticket O Sale price per ticket (2) O O Contribution margin O Contribution margin per ticket O Sale price per ticket O Sales mix O Variable cost per ticket O Sales mix O Variable cost per ticket (3) O O Contribution margin O Contribution margin per ticket price per ticket (4) O O Contribution margin O Contribution margin per ticket price per ticket (7) O fewer O Sales mix O Variable cost per ticket (6) O less than O more than (8) O higher O lower (9) O higher O lower (10) O higher O lower O more (5) O Contribution margin O Contribution margin per ticket Sale price per ticket (11) higher O lower (12) O fewer O more