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Suppose Queen 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 Queen 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 $184.000 per month and that the following ticket prices and variable expenses apply: Regular Cruise Executive Cruise Sale price per ticket $ 65 $ 165 Variable expense per passenger 40 $ 80 Assume that Queen Cruiseline expects to sell three regular cruises for every executive cruise. In this mix, the weighted average contribution margin per cruise is $40. Compute the total number of dinner cruises that Queen Cruiseline must sell to break even. b. Compute the number of regular cruises and executive cruises the company must sell to break even. a. a. Compute the total number of dinner cruises that Queen Cruiseline must sell to break even. First, enter the formula and then compute the total number of dinner cruises that Queen 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 b. Compute the number of regular cruises and executive cruises the company must sell to break even. Queen Cruiseline must sell regular cruises and executive cruises to break even
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