Question: A cafe will have an event and will charge a fixed rental fee of $720 for the event plus $19.90 per guest for food. The
A cafe will have an event and will charge a fixed rental fee of $720 for the event plus $19.90 per guest for food. The cafe has budgeted $965 for marketing expenses. It plans to hire a band, which will cost another $555. Tickets are expected to sell for $43.30 per guest. Ignore taxes. What is the degree of operating leverage if 261 guests attend?
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