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Suppose Super 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 Super 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 $240,000 per month and that the following ticket prices and variable expenses apply: (Click the icon to view the ticket prices and expenses.) Super Cruiseline expects to sell four regular cruises for every one executive cruise. In this mix, the weighted average contribution margin per cruise is $50. a. Compute the total number of dinner cruises that Super Cruiseline must sell to breakeven. b. Compute the number of regular cruises and executive cruises the company must sell to breakeven. a. Compute the total number of dinner cruises that Super Cruiseline must sell to breakeven. First, enter the formula and then compute the total number of dinner cruises that Super Cruiseline must sell to breakeven. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.) (1) (2) (3) = Breakeven uni b. Compute the number of regular cruises and executive cruises the company must sell to breakeven. regular cruises must be sold. executive cruises must be sold. 1: Data Table Sales price per ticket Variable expense per passenger Regular Cruise $ 80 40 Executive Cruise $ 150 60 (1) O Units sold Contribution margin ratio O Variable expenses Fixed expenses Weighted avg CM per unit Operating income Units sold Contribution margin ratio O Variable expenses O Fixed expenses Weighted avg CM per unit Operating income Units sold Contribution margin ratio O Variable expenses O Fixed expenses Weighted avg CM per unit o Operating income
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