Super Cruiseline offers nightly dinner cruises departing from several cities on the East Coast of...
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Super Cruiseline offers nightly dinner cruises departing from several cities on the East Coast of the United States including Charteston, Baltimore, and Alexandria. Dinner cruise tickets sell for $50 per passenger. Super Cruiseline's variable cost of providing the dinner is $20 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $210,000 per month. The company's relevant range extends to 18,000 monthly passengers: The breakeven sales are 7,000 tickets sold. a. Compute the operating leverage factor when Super Cruiseline sells 8,750 dinner cruises. b. If volume increases by 10%, by what percentage will operating income increase? c. If volume decreases by 5%, by what percentage will operating income decrease? a. Compute the operating leverage factor when Super Cruiseline sells 8.750 dinner cruises. (Round your answer to one decimal place.) First, identify the formula, then compute the operating leverage factor
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