Suppose FunTime 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: Assuming that Fun Time Cruiseline expects to sell four regula 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 pe passenger together and dividing by two.) Why? Is it higher o EEB (Click the icon to view the ticket prices and expenses.) lower than the regular cruise contribution margin of $20? Why? Will this new sales mix cause FunTime Cruiseline's breakeven point to increase or decrease from what it was when it only sold regular cruises? Assuming that Fun Time 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 Sale price per ticket Less: Variable cost per ticket Contribution margin per ticket Sales mix Contribution margin i Data Table Regular Cruise Executive Cruise Sale price per ticketS Variable expense per passenger 50 100 eck Answer 30 40 Suppose FunTime 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: Assuming that Fun Time Cruiseline expects to sell four regula 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 pe passenger together and dividing by two.) Why? Is it higher o EEB (Click the icon to view the ticket prices and expenses.) lower than the regular cruise contribution margin of $20? Why? Will this new sales mix cause FunTime Cruiseline's breakeven point to increase or decrease from what it was when it only sold regular cruises? Assuming that Fun Time 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 Sale price per ticket Less: Variable cost per ticket Contribution margin per ticket Sales mix Contribution margin i Data Table Regular Cruise Executive Cruise Sale price per ticketS Variable expense per passenger 50 100 eck Answer 30 40
