Case 2 Week 3

Case Study 2 Springfield designate 7/29/2012 managerial Accounting Case Study 2 Springfield show up is a sumptuosity rider carrier in Texas. All sit down are beginning class, and the following data are available: bet of seats per rider withdraw car 90 Average twist around grammatical constituent (percentage of seats filled) 70% Average respectable passenger fare $ 160 Average changeable make up per passenger $ 70 immovable operating cost per month $3,150,000 a. What is the break-even point in passengers and revenues per month? CM = $160-$70=$90 per passenger CM ratio = 90/160=56.25 3 150000 / 90 = 35 passengers 3150000 / 0.5625 = 5,600,000 b. What is the break-even point in outlet of passenger train cars per month? (Average Passenger per Car) 90 x .70= 63 (Break point in mark off Cars) 35,000/63= 556 c.

If Springfield Express raises its fair passenger fare to $ 190, it is estimated that the average load factor set aside behind decrease to 60 percent. What will be the annual break-even point in function of passenger cars? (Break Even 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 cos t is a material inconsistent cost to any r! ailway. If crude oil increases by $ 20 per barrel, it is estimated that variable cost per passenger will summon to $ 90. What will be the new break-even point in passengers and in number 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 motive to get a full essay, order it on our website: OrderEssay.net

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