Grand River Cruises (GRC) offers nightly dinner cruises on the lower Grand River. Regular dinner cruise tickets sell for $40 per passenger. GRC also provides executive dinner cruises at a price of $100. The variable cost of providing the dinner is $16 for the regular cruise and $32 for the executive cruise. The fixed cost of operating the vessels (depreciation, salaries, docking fees and other expenses) is $160,000 per month. During the month of June GRC sold 6,500 regular cruises and 3,000 executive cruises. Assume that $60,000 of the fixed cost is traceable to regular cruises while $75,000 of the fixed cost is traceable to executive cruises.
Prepare a segmented income statement using the contribution margin format.

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The Answer of Grand River Cruises (GRC) offers nightly dinner cruises on the lower Grand River. Regular dinner cruise tickets sell for $40 per passenger. GRC also provides executive dinner cruises at a price of $100. The variable cost of providing the dinner is $16 for the regular cruise and $32 for the executive cruise. The fixed cost of operating the vessels (depreciation, salaries, docking fees and other expenses) is $160,000 per month. During the month of June GRC sold 6,500 regular cruises and 3,000 executive cruises. Assume that $60,000 of the fixed cost is traceable to regular cruises while $75,000 of the fixed cost is traceable to executive cruises.
Prepare a segmented income statement using the contribution margin format.

Grand River Cruises (GRC) Offers Nightly Dinner Cruises on the Lower