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Suppose Live It Cruiseline decides to offer two types of dinner cruises: regular cruises and executive cruises. The executive cruise includes complimentary cocktails and
Suppose Live It 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.) Live It Cruiseline expects to sell four regular cruises for every one executive cruise. In this mix, the weighted-average contribution margin per cruise is $42. a. Compute the total number of dinner cruises that Live It Cruiseline must sell to breakeven. b. Compute the number of regular cruises and executive cruises the company must sell to breakeven. Data table Sales price per ticket Variable expense per passenger Regular Cruise Executive Cruise 50 130 20 40
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