Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose Ocean Cruiselines decides to offer two types of dinner cruises: Regular cruises and Executive cruises.The Executive cruise includes complimentary cocktails and five course dinner
Suppose Ocean Cruiselines decides to offer two types of dinner cruises: Regular cruises and Executive cruises.The Executive cruise includes complimentary cocktails and five course dinner on the upper deck. Assume that fixed expenses remain at $270,000 per month and that the following tickets prices and variable expense apply. Cruise Exec Sale price per ticket $ 50 $100 Variable expense per person $20 $40 Ocean Cruiselines expects to sell four regular cruises for every one executive cruise. In this one the weighted average contribution margin is $36.00. A. Compute the total number of dinner cruise that Ocean Cruiselines must sell to break even. Formula: fixed expenses + operating expenses / weighted average per unit. B. Compute the number of regular cruises and executive cruises that Ocean Cruislines must sell to break even
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started