Answer the Following Question(s)using the Information Below

question 90

Multiple Choice

Answer the following question(s) using the information below.Southwestern College is planning to hold a fund raising banquet at one of the local country clubs.It has two options for the banquet:
Southwestern College has budgeted $1,800 for administrative and marketing expenses.It plans to hire a band which will cost another $800.Tickets are expected to be $30 per person.Local business supporters will donate any other items required for the event.
-What is the degree of operating leverage for both options if 600 people attend?

• A)1.37 and 1.75 times respectively
• B)1.5 times and 1.74 times respectively
• C)1.10 and 1.29 times respectively
• D)0.75 and 1.07 times respectively
• E)Operating leverage is indeterminable.

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