Mini-Case 3.58 The university's Wildcat Lair caters to students and serves sandwiches and beverages. It has been reporting losses in past months. In July, for example, the loss was $5,000: Revenue $70,000 Expenses Purchases of prepared food $21,000 Serving personnel 30,000 Cashiers 5,500 Administrative 10,000 University surcharge Utilities 1,500 $75,000 Loss $(5,000) 7,000 The Lair purchases prepared food directly from University Food Services. This charge varies proportionately with the number and kind of meals served. Personnel paid by the Lair serve the food, tend the cash register, bus and clean tables, and wash dishes. The staffing levels rarely change; the existing staff can usually handle daily fluctuations in volume. Administrative costs are primarily the salaries of the manager and her office staff. Because the university provides support services for the Lair, such as payroll, human resources, and other administrative support, the university charges a surcharge of 10% of its revenues. Utility costs are the costs of cooling, heating, and lighting during its normal operating hours. The university's management is considering closing the Wildcat Lair because it has been operating at a loss. What is the breakeven point for Wildcat Lair from the university's perspective (including the university surcharge)? What is the breakeven point from Wildcat Lair's perspective (excluding the university surcharge)? (Round answer to 0 decimal places, e.g. 125.) University Wildcat Lair Breakeven point $ Calculate the degree of operating leverage for the Lair, ignoring the university surcharge. (Round to 1 decimal place, e.g. 1.1.) Degree of operating leverage