Suppose Ocean 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 Ocean 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 Ocean Cruiseline's breakeven point to increase or decrease from what it was when it only sold regular cruises?

Sale price per ticket. . . . . . . . . . . . . . . . . . . . . $50 $130

Variable expense per passenger. . . . . . . . . . $20 $40

Suppose Coast Cruiseline decides to offer two types of dinner cruises: regular cruises and executive cruises. The executive cruise includes complimentary cocktails and a five-course Assuming that Coast Cruiseline expects to sell four regular cruises for every executive cruise, compute the weighted-average contribution margin per unit. Is it higher or lower following ticket prices and variable expenses apply: than a simple average contribution margin? (A simple average is calculated by adding (Click the icon to view the ticket prices and expenses.) 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 Coast Cruiseline's breakeven point to increase or decrease from what it was when it only sold regular cruises? Assuming that Coast 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. Is the weighted-average contribution margin higher or lower than a simple average contribution margin? The weighted-average is the simple average because Coast Cruiseline sells regular cruises, which have a contribution margin, 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 margin than regular cruises. than the contribution margin of regular cruises because Coast Cruiseline sells some executive cruises, and they have a