For every 3 Zip Rider Adventure tickets sold, 2 Dog Sledding tickets are expected to be sold. The anticipated sales price for the Dog Sledding Excursion is $100 per excursion. He also believes he can save $5 per excursion for transportation, since the dog sledding site is much closer to the port than the Zip Rider Adventure. No other changes in variable costs are anticipated. He also has negotiated the following changes in rental fees and medical insurance premiums.
With fewer excursions purchased, the rental for the zip line facility will decrease to $33,000 per year, bu the lease on the dog sledding equipment will be $12,000 per year.
Medical insurance premiums are anticipated to be renegotiated. Jordan believes the estimated annual cost will be $23,750.
Assuming no changes are made to the current sales prices and variable costs for the Zip Rider Adventure excursion, prepare a sales mix analysis and calculate the expected weighted average contribution margin for both excursions.
Alaskan Cruise Excursions
Sales Mix Analysis
For the year ended December 31, 20XX
able[[,Excursions,Sales mix, able[[Sales price per],[unit]], able[[Variable cost],[per unit]], able[[Contribution],[margin per],[unit]], able[[Weighted],[average],[contribution],[margin per],[unit]]],[ able[[Zip Rider],[Adventure]],3,,%,$80,$35,],[ able[[Dog],[Sledding]],2,,%,$,,],[Totals,,,,,,]]
For every 3 Zip Rider Adventure tickets sold,2 Dog Sledding tickets are expected to be sold.The anticipated sales price for the Dog Sledding Excursion is$100 per excursion.He also believes he can save $5 per excursion for transportation, since the dog sledding site is much closer to the port than the Zip Rider Adventure. No other changes in variable costs are anticipated. He also has negotiated the following changes in rental fees and medical insurance premiums.
With fewer excursions purchased, the rental for the zip line facility will decrease to $33,000 per year, b the lease on the dog sledding equipment will be $12,000 per year. - Medical insurance premiums are anticipated to be renegotiated. Jordan believes the estimated annual cost will be$23,750.
Assuming no changes are made to the current sales prices and variable costs for the Zip Rider Adventure excursion, prepare a sales mix analysis and calculate the expected weighted average contribution margin for both excursions.
Alaskan Cruise Excursions Sales Mix Analysis
For the year ended December 31,20XX
Excursions
Sales mix
Sales price per unit
Variable cost per unit
Contribution margin per unit
Weighted average contribution margin per unit
Zip Rider Adventure
3
%
$80
$35
$45
Dog Sledding
2
%
$
Totals
5
$:
