Blue Seas Cruiseline offers two types of dinner cruises: Regular and Executive. The contribution margin per ticket sold is $30 for the regular cruise, and $90 for the executive. Fixed costs are $210,000. It expects to sell four regular dinner cruises for every one executive dinner cruise. What is the total number of regular cruises Blue Seas must sell in order to breakeven? A. 1,750 B. 5,000 C. 4,000 D. 1,000

C. 4,000 regular cruises

Explanation:

The Break-even point is where the operating income is zero that is, the firm pay theri variable and fixed cost related to opperations.

Where:

As the company has multple product we must solve for the contribution of the mix:

regular: 30

executive: 90

the ratio of sales is 4:1

Thus 30 x 4/5 + 90 x 1/5 = contribution mix

contribution mix:42

At the current sales ratio we expect to make 42 dollar per seat

Now we calcualte for the BEP of the mix:

BEP 5000

Now, we solve for the ratio of sales wich is 4/5 for regular cruises:

5,000 x 4/5 = 4,000

the best answer is c. has a low lpc score.good luck

explanation:

answer; post closing trial balance;