Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose Live It Cruiseline decides to offer two types of dinner cruises: regular cruises and executive cruises. The executive cruise includes complimentary cocktails and

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting

Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay

6th edition

013703038X, 978-0137030385

More Books

Students also viewed these Accounting questions

Question

Determine miller indices of plane A Z a/2 X a/2 a/2 Y

Answered: 1 week ago