Bay Cruiseline offers nightly dinner cruises off the coast of Miami, San Francisco, and Seattle. Dinner cruise tickets sell for $50 per passenger. Bay Cruiselines 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 $210,000 per month. The companys relevant range extends to 15,000 monthly passengers. SHOW WORK PLEASE

1. If Bay Cruiseline sells 10,000 dinner cruises, compute the margin of safety in: a. Units: b. Sales dollars: c. As a percentage of sales: 2. Compute the operating leverage factor when Bay Cruiseline sells 12,000 dinner cruises: 3. If volume increases by 10%, by what percentage will operating income increase