Suppose Royal Hellenic 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 $210,000 per month and that the following ticket prices and variable expenses apply: (Click the icon to view the data.) Assuming that Royal Hellenic 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? Why? Is it higher or lower than the regular cruise contribution margin? Why? Will this new sales mix cause Royal Hellenic Cruiseline's break-even point to increase or decrease from what it was when it sold only regular cruises? Assuming that Royal Hellenic Cruiseline expects to sell four regular cruises for every one executive cruise, compute the weighted-average contribution margin per unit. Determine the formula, and then complete the table one section at a time. Regular Executive Total Deduct: * Sales mix in units Weighted-average contribution margin per unit What is the simple average contribution margin? (Round the answer to the nearest cent.) The simple average contribution margin is $ Is the weighted-average contribution margin higher or lower than a simple average contribution margin? The weighted-average is the simple average because Royal Hellenic Cruiseline sells Ticket prices and variable expenses Regular Cruise Executive Cruise Sale price per ticket.. $ 50 $ 130 Variable expense per passenger.... 20 50 Print Done 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? Why? The weighted-average contribution margin is than the contribution margin of regular cruises because Royal Hellenic Cruiseline sells some executive cruises, and they have a contribution margin than regular cruises. Submit quiz