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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
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 are $225,000 per month and that the following ticket prices and variable expenses apply: Regular Cruise Executive Cruise Sale price per ticket. $ 85 160 Variable expense per passenger 50 75 Assume that Ocean Cruiseline expects to sell four regular cruises for every executive cruise. In this mix, the weighted-average contribution margin per cruise is $45. Compute the total number of dinner cruises that Ocean Cruiseline must sell to break even. b. Compute the number of regular cruises and executive cruises the company must sell to break even. a. Compute the total number of dinner cruises that Ocean Cruiseline must sell to break even. First, enter the formula and then compute the total number of dinner cruises that Ocean Cruiseline must sell to break-even. (For amounts with a zero balance, make sure to enter "0" in the appropriate cell. Abbreviations used: avg. CM= average contribution margin.) = Break-even units
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