If the Grand Canyon Railway’s volume decreases by 8%, by what percentage will its operating income decrease?

Q 48%

h. 1%

c. 26.16%

d. 8%

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.