Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Great Cruiseline offers nightly dinner Cruises off the coast of Nanaimo and Victoria Dinner Cruise ticket sell for $50 per passenger. Great's rule out of

image text in transcribed
Great Cruiseline offers nightly dinner Cruises off the coast of Nanaimo and Victoria Dinner Cruise ticket sell for $50 per passenger. Great's rule out of providing the 20 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $207.000 per month. The company's marrangements 8000 monthly passengers. The break-even sales are 6,900 tickets sold. a. Compute the operating leverage factor when Great Cruiseline seils 11.000 dinner Cruises b. If volume increases by 12%, by what percentage will operating income increase? c. I volume decreases by 7%, by what percentage will operating income decrease? a. Compute the operating hverage factor when Great Cruseline valla 11.000 dinner res. First dority the formula, and then compute the operating leverage factor. (Round your answer to two decimal places. Xxx) Operating leverage factor b. Il volume increases by 12%, by what percentage wil operating income increase?(tound your answer to two decimal pa. Xxx # volume increases by 12%, the percentage that operating Income will increase is c. W volume decreases by 7%, by what percentage will operating income decrease? (Round your answer to two decimal places. ) if volume decreases by 7%, the percentage that operating income will decrease in

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Managerial Accounting

Authors: Peter Brewer, Ray Garrison, Eric Noreen

3rd Edition

0073048836, 9780073048833

More Books

Students also viewed these Accounting questions

Question

What are the path-goal theory leadership styles?

Answered: 1 week ago