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 $ b $ per person for food OPTION two: Tallgrass Country Club a Fixed rental cost of $ b $ per person for food Southwestern College has budgeted $ for administrative and marketing expenses. It plans to hire a band which will cost another $ Tickets are expected to be $ per person. Local business supporters will donate any other items required for the event. Which option provides the greatest degree of operating leverage if people attend? A Option one B Option two C Both options provide equal degrees of operating leverage. D Operating leverage is indeterminable.
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 $
b $ per person for food
OPTION two: Tallgrass Country Club
a Fixed rental cost of $
b $ per person for food
Southwestern College has budgeted $ for administrative and marketing expenses. It plans to hire a band which will cost another $ Tickets are expected to be $ per person. Local business supporters will donate any other items required for the event.
Which option provides the greatest degree of operating leverage if 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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