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nydimaria [60]
3 years ago
12

Great Cruiseline offers nightly dinner cruises off the coast of​ Miami, San​ Francisco, and Seattle. Dinner cruise tickets sell

for $ 80 per passenger. Excel ​Cruiseline's variable cost of providing the dinner is $ 40 per​ passenger, and the fixed cost of operating the vessels​ (depreciation, salaries, docking​ fees, and other​ expenses) is $ 240, 000 per month. The​ company's relevant range extends to 18,000 monthly passengers. The breakeven sales are 9000 tickets sold. Use this information to compute the​ following:
a. Compute the operating leverage factor when Great Cruiseline sells 12000 dinner cruises.   
b. If volume increases by 8​%, by what percentage will operating income​ increase?
c. If volume decreases by 5​%, by what percentage will operating income​ decrease?

Business
1 answer:
kvasek [131]3 years ago
8 0

Answer:see attached file

Explanation:

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