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Business, 16.04.2020 01:46 angela6844

Classy Cruiseline offers nightly dinner cruises departing from several cities on the eastern coast of the United States including Charleston, Baltimore, and Alexandria. Dinner cruise tickets sell for $ 50 per passenger. Classy 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 comma 000 per month. The company's relevant range extends to 14 comma 000 monthly passengers. The breakeven sales are 7 comma 000 tickets sold. a. Compute the operating leverage factor when Classy Cruiseline sells 8 comma 750 dinner cruises. b. If volume increases by 9%, by what percentage will operating income increase? c. If volume decreases by 4%, by what percentage will operating income decrease?

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