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Queen Cruiseline offers nightly dinner cruises off the coast of Nanaimo and Victoria. Dinner Cruise tickets sell for $60 per passenger. Queen Cruiseline's variable cost
Queen Cruiseline offers nightly dinner cruises off the coast of Nanaimo and Victoria. Dinner Cruise tickets sell for $60 per passenger. Queen Cruiseline's variable cost of providing the dinner is $30 per passenger, and the fixed cost of operating (depreciation, salaries, docking fees, and other expenses) is $225,000 per month. The company's relevant range extends to 20,000 monthly passengers. The break-even sales are 7,500 tickets sold a. Compute the operating leverage factor when Queen Cruiseline sells 15,000 dinner cruises b. If volume increases by 18%, by what percentage will operating income increase? c. If volume decreases by 13%, by what percentage will operating income decrease? a. Compute the operating leverage factor when Queen Cruiseline sells 15,000 dinner cruises. First identify the formula, and then compute the operating leverage factor (Round your answer to two decimal places, X.XX.) Operating leverage factor b. If volume increases by 18%, by what percentage will operating income increase? (Round your answer to two decimal places, X.XX.) If volume increases by 18%, the percentage that operating income will increase is % c. If volume decreases by 13%, by what percentage will operating income decrease? (Round your answer to two decimal places, X.XX.) If volume decreases by 13%, the percentage that operating income will decrease is %
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