Question: Use the information from the Luxury Cruiseline Data Set. a. Compute the operating leverage factor when Luxury Cruiseline sells 12,000 dinner cruises. b. If volume

Use the information from the Luxury Cruiseline Data Set.
a. Compute the operating leverage factor when Luxury Cruiseline sells 12,000 dinner cruises.
b. If volume increases by 10%, by what percentage will operating income increase?
c. If volume decreases by 5%, by what percentage will operating income decrease?
Luxury Cruiseline offers nightly dinner cruises off the coast of Miami, San Francisco, and Seattle. Dinner cruise tickets sell for $120 per passenger. Luxury Cruiseline's variable cost of providing the dinner is $48 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $270,000 per month. The company's relevant range extends to 15,000 monthly passengers.

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