Suppose Bay Cruiseline offers nightly dinner cruises off the coast of Miami, San Francisco, and Seattle. Dinner cruise tickets sell for $$50$ per passenger. Bay Cruiseline$$s variable cost of providing the dinner is $$20$ per passenger, and the fixed cost of operating the vessels $($depreciation$,$ salaries, docking fees, and other expenses$)$ is $$210,000$ per month. The company$$s relevant range extends to $15,000$ monthly passengers.

Use the above information for Bay Cruiseline Data Set.

$1.$ If Bay Cruiseline sells $10,000$ dinner cruises, compute the margin of safety in:

a$.$ Units:

b$.$ Sales dollars:

c$.$ As a percentage of sales:

$2.$ Compute the operating leverage factor when Bay Cruiseline sells $12,000$ dinner cruises:

$3.$ If volume increases by $10\%,$ by what percentage will operating income increase?