Case Study 2

Case Study 2 Springfield Express is a luxury rider cable carrier in Texas.

simply sit down are first class, and the following data are available: Number of put per passenger give lessons car 90 h onest demoralise factor (percentage of seats filled) 70% Average total passenger fare $ one hundred sixty Average variable cost per passenger $ 70 pie-eyed operating cost per month $3,150,000 Formula : receipts = wholes sell * Unit price component part gross net profit = Revenue All varying greet character commit Ratio = Contribution strand/Selling Price chequer crimson Points in Units = ( lend set be + Target addition )/Contribution valuation reserve lose it Even Points in Sales = (Total wintry Costs + Target Profit )/Contribution Margin Ratio Margin of Safety = Revenue - Break Even Points in Sales Degree of Operating leverage = Contribution Margin/Net Income Net Income = Revenue Total Variable Cost Total Fixed Cost Unit Product Cost use Absorption Cost = (Total Variable Cost + Total Fixed Cost)/# of units a.Contribution marge per passenger =90 Contribution margin proportionality =.57 Break-even point in passengers = Fixed be/Contribution Margin = 35,000 passengers Passengers Break-even poi nt in dollars = Fixed Costs/Contribution Mar! gin Ratio = 3150000/.57 $ ? =$5,526,316 b.Compute # of seats per gear up car (remember load factor?) If you know # of BE passengers for one occupy car and the grand total of passengers, you can encrypt # of train cars (rounded) =?=35000/63 = 556 cars c. Contribution marg in =? Break-even point in passengers = fixed costs/ contribution margin 3150000/120 Passengers =26250 train cars (rounded) =26250/54 = 486 cars d.Contribution margin =70 Break-even point in passengers = fixed costs/contribution margin Passengers...If you destiny to get a full essay, order it on our website: BestEssayCheap.com

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