Suppose FunTime Cruiseline decides to offer two types of dinner cruises: regular cruises and executive cruises....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Suppose FunTime 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 $210,000 per month contribution margin per unit. Is it higher or lower than a simple average contribution margin? (A simple average is calculated by adding and that the following ticket prices and variable expenses apply: E (Click the icon to view the ticket prices and expenses.) Assuming that FunTime Cruiseline expects to sell four regular cruises for every executive cruise, compute the weighted-average both contribution margins per passenger together and dividing by two.) Why? Is it higher or lower than the regular cruise contribution margin of $20? Why? Will this new sales mix cause FunTime Cruiseline's breakeven point to increase or decrease from what it was when it only sold regular cruises? Assuming that FunTime Cruiseline expects to sell four regular cruises for every one executive cruise, compute the weighted-average contribution margin per unit. Determine the formula, then complete the table one section at a time. Regular Executive Total Data Table Less: Regular Executive Cruise Cruise $ $ Sale price.per. ticket. . Variable expense per 50 100 Weighted-average contribution margin per unit passenger 30 40 A simple average contribution margin would be $ Print Done Is the weighted-average contribution margin higher or lower than a simple average contribution margin? The weighted-average is V the simple average because FunTime Cruiseline sells V 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 of $20? Why? The weighted-average contribution margin is V than the contribution margin of regular cruises because FunTime Cruiseline sells some executive cruises, and they have a contribution margin than regular cruises. Will this new sales mix cause FunTime Cruiseline's breakeven point to increase or decrease from what it was when it only sold regular cruises? Because the new sales mix creates a V weighted-average contribution margin, FunTime Cruiseline will need to sell V cruises, in total, to breakeven than when they just sold regular cruises. Suppose FunTime 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 $210,000 per month contribution margin per unit. Is it higher or lower than a simple average contribution margin? (A simple average is calculated by adding and that the following ticket prices and variable expenses apply: E (Click the icon to view the ticket prices and expenses.) Assuming that FunTime Cruiseline expects to sell four regular cruises for every executive cruise, compute the weighted-average both contribution margins per passenger together and dividing by two.) Why? Is it higher or lower than the regular cruise contribution margin of $20? Why? Will this new sales mix cause FunTime Cruiseline's breakeven point to increase or decrease from what it was when it only sold regular cruises? Assuming that FunTime Cruiseline expects to sell four regular cruises for every one executive cruise, compute the weighted-average contribution margin per unit. Determine the formula, then complete the table one section at a time. Regular Executive Total Data Table Less: Regular Executive Cruise Cruise $ $ Sale price.per. ticket. . Variable expense per 50 100 Weighted-average contribution margin per unit passenger 30 40 A simple average contribution margin would be $ Print Done Is the weighted-average contribution margin higher or lower than a simple average contribution margin? The weighted-average is V the simple average because FunTime Cruiseline sells V 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 of $20? Why? The weighted-average contribution margin is V than the contribution margin of regular cruises because FunTime Cruiseline sells some executive cruises, and they have a contribution margin than regular cruises. Will this new sales mix cause FunTime Cruiseline's breakeven point to increase or decrease from what it was when it only sold regular cruises? Because the new sales mix creates a V weighted-average contribution margin, FunTime Cruiseline will need to sell V cruises, in total, to breakeven than when they just sold regular cruises. Suppose FunTime 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 $210,000 per month contribution margin per unit. Is it higher or lower than a simple average contribution margin? (A simple average is calculated by adding and that the following ticket prices and variable expenses apply: E (Click the icon to view the ticket prices and expenses.) Assuming that FunTime Cruiseline expects to sell four regular cruises for every executive cruise, compute the weighted-average both contribution margins per passenger together and dividing by two.) Why? Is it higher or lower than the regular cruise contribution margin of $20? Why? Will this new sales mix cause FunTime Cruiseline's breakeven point to increase or decrease from what it was when it only sold regular cruises? Assuming that FunTime Cruiseline expects to sell four regular cruises for every one executive cruise, compute the weighted-average contribution margin per unit. Determine the formula, then complete the table one section at a time. Regular Executive Total Data Table Less: Regular Executive Cruise Cruise $ $ Sale price.per. ticket. . Variable expense per 50 100 Weighted-average contribution margin per unit passenger 30 40 A simple average contribution margin would be $ Print Done Is the weighted-average contribution margin higher or lower than a simple average contribution margin? The weighted-average is V the simple average because FunTime Cruiseline sells V 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 of $20? Why? The weighted-average contribution margin is V than the contribution margin of regular cruises because FunTime Cruiseline sells some executive cruises, and they have a contribution margin than regular cruises. Will this new sales mix cause FunTime Cruiseline's breakeven point to increase or decrease from what it was when it only sold regular cruises? Because the new sales mix creates a V weighted-average contribution margin, FunTime Cruiseline will need to sell V cruises, in total, to breakeven than when they just sold regular cruises. Suppose FunTime 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 $210,000 per month contribution margin per unit. Is it higher or lower than a simple average contribution margin? (A simple average is calculated by adding and that the following ticket prices and variable expenses apply: E (Click the icon to view the ticket prices and expenses.) Assuming that FunTime Cruiseline expects to sell four regular cruises for every executive cruise, compute the weighted-average both contribution margins per passenger together and dividing by two.) Why? Is it higher or lower than the regular cruise contribution margin of $20? Why? Will this new sales mix cause FunTime Cruiseline's breakeven point to increase or decrease from what it was when it only sold regular cruises? Assuming that FunTime Cruiseline expects to sell four regular cruises for every one executive cruise, compute the weighted-average contribution margin per unit. Determine the formula, then complete the table one section at a time. Regular Executive Total Data Table Less: Regular Executive Cruise Cruise $ $ Sale price.per. ticket. . Variable expense per 50 100 Weighted-average contribution margin per unit passenger 30 40 A simple average contribution margin would be $ Print Done Is the weighted-average contribution margin higher or lower than a simple average contribution margin? The weighted-average is V the simple average because FunTime Cruiseline sells V 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 of $20? Why? The weighted-average contribution margin is V than the contribution margin of regular cruises because FunTime Cruiseline sells some executive cruises, and they have a contribution margin than regular cruises. Will this new sales mix cause FunTime Cruiseline's breakeven point to increase or decrease from what it was when it only sold regular cruises? Because the new sales mix creates a V weighted-average contribution margin, FunTime Cruiseline will need to sell V cruises, in total, to breakeven than when they just sold regular cruises.
Expert Answer:
Answer rating: 100% (QA)
Solution Calculate the contribution margin per unit Therefore the contribution marg It is men... View the full answer
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
Posted Date:
Students also viewed these accounting questions
-
Contribution margin per unit approach for break-even and desired profit Information concerning a product produced by Salter Company appears here: Required Determine the following: a. Contribution...
-
Contribution margin per unit approach for break-even and desired profit Information concerning a product produced by Agar Company appears here: Required Determine the following: a. Contribution...
-
What does the term contribution margin per unit mean? How is the contribution margin used in cost analysis to support managerial decisions?
-
The CFO of the Jordan Microscope Corporation intentionally misclassified a downstream transportation expense in the amount of $575,000 as a product cost in an accounting period when the company made...
-
1. What specific conduct of Robinson was the state trying to stop? 2. Why did the state supreme court agree that Robinson was not engaging in the unauthorized practice of law by representing others...
-
The following is the inventory of items received to continue the examination at Johnson Real Estate. In this chapter, the goal is to focus on the missing deposits: who, what, when, where, and how....
-
explain how forward contracts are used to hedge based on anticipated exchange rate movements,
-
This exercise is a continuation of E5-13. Proud Corporation acquired 80 percent of Stergis Companys voting stock on January 1, 20X3, at underlying book value. The fair value of the noncontrolling...
-
Rusty Reft, who lives in Territory 5, carries 10/20/5 compulsory liability insurance along with optional collision that has a $300 deductible. Rusty was at fault in an accident that caused $1,300...
-
The accounts of Hernandez Computer Repair, Inc., and their normal balances at March 31, 2018, follow. The accounts are listed in no particular order. Requirements 1. Prepare the company?s trial...
-
Prepare necessary journal entries from the following transactions related with a Takaful product. (2 mark) Contribution received from new participants $1,000. An amount of $2500 received as...
-
How do ecological stoichiometry principles inform our understanding of nutrient cycling dynamics and ecosystem productivity, especially in light of anthropogenic disturbances and global change...
-
Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following Asset Machine A Machine B Original Cost $33,000 69,200 Accumulated...
-
A high-tech firm produces two different products. The firm has a contract with the government to supply up to 30 units per day of product 1 and up to 15 units per day of product 2. The firm makes an...
-
Modern wind turbines generate electricity from wind power. The large, massive blades have a large moment of inertia and carry a great amount of angular momentum when rotating. A wind turbine has a...
-
i. Plant and Equipment to be depreciated for the month of January are composed of the following...(the January 31 lump-sum purchase of fixed assets will not be depreciated until February; this...
-
Homework: Chapter 12 Score: 0 of 1 pt S12-5 (similar to) Save 3 of 11 (2 complete) HW Score: 12.88%, 1.42 of 11 pts Question Help Starlight Drive-Ins borrowed money by issuing $2,000,000 of 11% bonds...
-
Multiple Choice Questions: 1. The largest component of aggregate demand is? a. Government purchases. b. Net exports. c. Consumption. d. Investment. 2. A reduction in personal income taxes, other...
-
Oscroft Company makes household water filtration equipment. The Aquafresh Division manufactures filters. The Sweet Water Division then uses the filters as a component of the final product Oscroft...
-
Clifton Corporations balance sheet indicates that the company has $100,000 invested in operating assets. During 2011, Clifton earned $16,000 of operating income on $320,000 of sales. Required a....
-
In 2012, Pingtung Corporation incurred direct manufacturing costs of $35 per unit and manufacturing overhead costs of $175,000. The production activity for the four quarters of 2012 follows: Required...
-
Around the Horn (B). Assume the following bid-ask quotes and calculate how the market trader can now make an intermarket arbitrage profit. Banks Spot Rates Citibank $1.6192-96/ National Westminster...
-
Great Pyramids. Inspired by his recent trip to the Great Pyramids, Citibank trader Ruminder Dhillon wonders if he can make an intermarket arbitrage profit using Libyan dinars (LYD) and Saudi riyals...
-
Bank for International Settlements. The Bank for International Settlements (BIS) publishes a wealth of effective exchange rate indices. Use its database and analyses to determine the degree to which...
Study smarter with the SolutionInn App