If the Grand Canyon Railway serves 1,200 passengers, what is its operating leverage factor?

a. 1 CP 6

c. 3.27

d. 0.16 Grand Canyon Railway operates a turn-of-the-century train that transports passengers from Williams, Arizona, to the Grand Canyon and back every day. Assume that the train tickets sell for $60 per passenger, the railway’s variable costs are $10 per passenger, and its fixed expenses are $50,000 each month.