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?
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?
1 answer:
You might be interested in
Answer: Attached below is the missing data related to your question
answer : 66 boxes
Explanation:
<u>Determine the number of boxes of screws that ADR should order </u>
we can determine the number of boxes by applying the relationship below
Q ( quantity of boxes ) = d ( T + L ) + SS - I ------ ( 1 )
where: d = 2 ( average daily demand )
T = 21 ( frequency of visit by local rep )
L = 4 ( lead time )
SS = 20 , I = 4
back to equation 1
Q = 2 ( 21 + 4 ) + 20 - 4
= 2 ( 25 ) + 16
= 50 + 16 = 66 boxes
