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Southwestern College is planning to hold a fund raising banquet at one of the local...

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Accounting

Southwestern College is planning to hold a fund raising banquet at one of the local country clubs. It has two options for the banquet:
OPTION one: Crestview Country Club
a. Fixed rental cost of $1,000
b. $12 per person for food
OPTION two: Tallgrass Country Club
a. Fixed rental cost of $3,000
b. $8.00 per person for food
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.
Which option provides the greatest degree of operating leverage if 600 people attend?
A. Option one
B. Option two
C. Both options provide equal degrees of operating leverage.
D. Operating leverage is indeterminable.
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