Cruiseline offers nightly dinner cruises departing from several cities on the East Coast of the United States including$$ Charleston, Baltimore, and Alexandria. Dinner cruise tickets sell for $ $60$ per passenger. Ocean $$Cruiseline$\text{'}$s variable cost of providing the dinner is $ $30$ per$$ passenger, and the fixed cost of operating the vessels$($depreciation$,$ salaries, docking$$ fees, and other$$ expenses$)$ is $ $270$ comma $000$ per month. The$$ company's relevant range extends to $14$ comma $000$ monthly passengers. The breakeven sales are $9$ comma $000$ tickets sold.

a$.$ Compute the operating leverage factor when Ocean Cruiseline sells $10$ comma $000$ dinner cruises.$$

b$.$ If volume increases by $6\%,$ by what percentage will operating income$$ increase?

c$.$ If volume decreases by $5\%,$ by what percentage will operating income$$ decrease?

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Part $1$

a$.$ Compute the operating leverage factor when Ocean Cruiseline sells $10$ comma $000$ dinner cruises. $($Round your answer to one decimal$$ place.$)$

$$First$,$ identify the$$ formula, then compute the operating leverage factor.

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Operating leverage factor