9.18 NRV method, contribution margin and further processing for a service Deluxe Tours, a tour or Q2, Q3, Q4 ganizer, leased a cruise liner for a special round-the-world tour. The lease cost is $200,000. Two classes REQUIRED: of passengers are booked on the tour: first class and economy class. The total revenue from the 100 first-class passengers is $200,000, and from the 200 economy-class passengers is $200,000. Other costs for the two classes of passengers amount to $30,000 for first class and $30,000 for economy class. A. How much of the lease cost would be allocated to first-class passengers if the net realiz- able value method is used? B. What is the contribution margin generated by first-class passengers? C. When the cruise liner managers are deciding whether to increase the number of first-class rooms, which joint cost allocation method is best to use? Explain.