User Account

All Pages

Compute the total number of dinner cruises

Assignment Help Managerial Accounting
Reference no: EM133110549

Question - Suppose Excel 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 $162,500 per month and that the following ticket prices and variable expenses apply:

 

Regular Cruise

Executive Cruise

Sale price per ticket

$60

$155

Variable expense per passenger

$45

$90

Assume that Excel Cruiseline expects to sell four regular cruises for every executive cruise. In this mix, the weighted-average contribution margin per cruise is $25.

Required -

a. Compute the total number of dinner cruises that Excel Cruiseline must sell to break even.

b. Compute the number of regular cruises and executive cruises the company must sell to break even.

Reference no: EM133110549

Questions Cloud

Find a 1-year forward interest rate : All interest rates are annual interest rates with semi-annual compounding unless specified otherwise. All coupon rates are annual coupon rates paid semi-annuall
Calculate the new machine net present value : The new machine is expected to have a salvage value of $20,000 at the end of its ten-year life. Calculate the new machine net present value
Estimate the intrinsic value of preferred share : The following facts concerning the MNK 4.75 percent perpetual preferred shares are as follows:
What is next year dollar equivalent : What is your next year dollar equivalent of these A/R if you use money-market hedge and have no debt
Compute the total number of dinner cruises : In this mix the weighted-average contribution margin per cruise is $25. Compute the total number of dinner cruises that Excel Cruiseline must sell to break even
What is the value of the call option now : The price of Tara, Inc. stock will be either $60 or $80 at the end of the year. Call options are available with one year to expiration. T-Bills currently yield
What is the spread profit-to-loss ratio : a. If you decide to enter into a bear spread, how would it be structured, and what would the potential profit or loss be?
Prepare a cost volume profit income statement : For the year ended December 31, 2020, Hot Locks Company produced and sold 10,000 hair dryers: Prepare a Cost Volume Profit income statement
Develop a decision analysis formulation : MyBusinessCom is inquiring whether to extend an $80,000 credit to a potential new customer. Very often, the following categories are used for the credit-worthin

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Calculate the new machine payback period

The company paid $104,000 for the machine, which was state of the art at the time of purchase. Calculate the new machine's payback period

  Direct costs of the brentwood store

The Shoe Department is one of many departments at the Brentwood Store. The central warehouse serves all of the company's stores - what is the total amount of the costs listed above that are not direct costs of the Brentwood Store?

  What is the expected revenue for april

What is the expected revenue for April? D'Lightful Wheels Co. (DWC) manufactures bicycles. It expects to sell 20,000 bicycles in April and had 1,200 bicycles

  How might senior management motivate employees to behave

Using notions such as fixed costs per unit, and other management accounting concepts, explain this apparent paradox. What is the actual best approach?

  Prepare journal entries that troy wholesalers records

May 11 Sydney accepts delivery of $40,000 of merchandise, Prepare journal entries that Troy Wholesalers (seller) records for these three transactions.

  What were the equivalent units of production

For the month of January, there were no units in the beginning work in process inventory; What were the equivalent units of production

  What the budget variance arises from a comparison of

What The budget variance arises from a comparison of? actual variable overhead expenditures with budgeted variable overhead costs.

  Compute how many units must sold to achieve a target profit

Contribution margin, How many units must be sold to achieve a target profit of $6,426? (Do not round intermediate calculations.)

  Draw an NPV profile for the investment

BA 412 Advanced Capital Budgeting. What is the NPV of this investment if the interest rate is 0, 5, 10, 15, 20, 25, and 30%? Draw an NPV profile for investment

  Find and solve predetermined overhead rates per machine

Find and Solve the predetermined overhead rates per machine hour based on practical capacity, normal capacity and budgeted capacity respectively.

  Compute the net present value

Following is information on two alternative investments being considered by Jolee Company. Compute the net present value

  Determine the direct labor rate variance

Actual rate for direct labor $12.50 per hr. Determine the direct labor rate variance, time variance, and total direct labor cost variance

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd