Use the information from the Crystal Cruiseline Data Set. Suppose Crystal 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 and that the following ticket prices and variable expenses apply:

Assuming that Crystal 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 calculated in S7- 1? Why? Will this new sales mix cause Crystal Cruiseline’s breakeven point to increase or decrease from what it was when it sold only regularcruises?

  • CreatedAugust 27, 2014
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