Ocean Cruiseline offers nightly dinner cruises off the coast of Miami, San Francisco, and Seattle. Dinner cruise tickets sell for $60 per passenger. Ocen Cruiselines variable cost of providing the dinner is $30per passenger, and thefixed cost of operating the vessels(depreciation, salaries, docking fees, and otherexpenses) is $270,000 per month. The companys relevant range extends to 20,000 monthly passengers. The breakeven sales are 9,000 tickets sold.

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

b.If volume increases by 7%, by what percentagewill operating income increase?

c.If volume decreases by 4%, by what percentage will operating income decrease?

Ocean Cruiseline offers nightly dinner cruises off the coast of Miaml San Francisce, and Seatle Dinner onse Sckets se o 50 pr passenger Ocean Cruhalew's vabe cost of rviing dr 530 pr paeng e t fxed cost of operating the vessels (depreciation, salarles, docking fees, and othor expensen) 52718,000 per month The company's relevant ane exeds to 210 000 mo senges The b a 3000 tick a. Compute the operating leverage factor when Ocean Crubeline sets 10 000 dinnercruen b. Il volume i creases by 7% by what percentage w operating income ioene? c."volme deceases by 4%, by what pereertage wn operatrg iceme deo ease? a. Compute the operating First identity the formula, then compute the operating leverage factr leverage factor when Ocean Cruiseline sels 10,000 din uises (Round your answer to one decimal place) Operating leverage fachor