Case 2 Week 3

Case Study 2 capital of Illinois designate 7/29/2012 managerial Accounting Case Study 2 capital of Illinois show up is a sumptuosity rider letter carrier in Texas. All pose are first class, and the following(a) data are useable: bet of seats per rider acquire car 90 medium debase grammatical fate (percentage of seats filled) 70% add up full rider act $ one hundred sixty Average changeable follow per rider $ 70 immovable direct constitute per month $3,150,000 a. What is the break- rase bear down in passengers and revenues per month? CM = $160-$70=$90 per passenger CM ratio = 90/160=56.25 3150000 / 90 = 35 passengers 3150000 / 0.5625 = 5,600,000 b. What is the break-even agitate in outlet of passenger train cars per month? (Average passenger per Car) 90 x .70= 63 (Break til now in Train Cars) 35,000/63= 556 c.

If Springfield state raises its bonnie passenger fare to $ 190, it is estimated that the middling load factor get around behind decrease to 60 percent. What go forth be the semestral break-even heyday in take to the woods of passenger cars? (Break still in passengers) 3,150,000/ (190-70) = 26250 (Average Passengers per Car) 90 x .60= 54 (Break Even In Train Cars) 26250/54= 486 d. (Refer to original data.) Fuel cost is a significant uncertain cost to any railway. If rough oil increases by $ 20 per barrel, it is estimated that variable cost per passenger will rise to $ 90. What will be the new break-even point in passengers and in design of passenger train cars? (Break even in passengers) 3,150,000 / (170-90) = 39,375 (Average Passengers per Car) 90 x .70= 63 (Break Even in train Cars) 39,375/63= 625 e. Springfield Express has experienced an increase in variable cost per passenger to $ 85 and an increase in total...If you want to get a full essay, order it on our website: Ordercustompaper.com

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