Managerial Accounting-Case Study 2

Data reckon of sit down per passenger demand car90 average cut component part (percentage of seats alter)70% medium complete passenger$ one hundred sixty fair(a) Variable monetary value per passenger$70 emend operating costing per calendar month$3,150,000 A.What is the break-even take object glass in passengers and revenue enhancements per month? section margin = gross revenue per whole Variable expenses per building block $ one hundred sixty - $70 = $90 = contribution margin Break-even stain in passengers = firm expenses/Unit Contribution Margin $3,150,000/90 = 35,000 Break-even point in revenues per month = unit sales to break-even x sales per unit 35,000 x $160 = $5,600,000 The break-even point in passengers in 35,000 and the revenue per month is $5,600,000. B.What is the break-even point in shape of passenger correspond cars per month? second of position per passenger caravan x Average commitment component part = functio n of Seats that ar change 90 x 70% = 63 Break-even point in passengers/Number of seats that are filled = break-in number per month 35,000/63 = 556 (rounded up) The break-even point in number of passenger train cars per month is 556 cars. C.If Springfield chatter mail raises it average passenger fare to $190, it is estimated that the average essence factor will decrease to 60%. What will be the periodical break-even point in number of passenger cars?

Number of Seats per passenger train x Average load factor = Number of Seats that are filled 90 x 60% = 54 Break-even point in passengers/Number of seats that are filled = break-in number per! month 35,000/54 = 648 The break-even point in number of passenger train cars per month is 648 cars. D.(Refer to original data) Fuel cost is a portentous variable cast to any railway. If megascopic oil increases by $20 per barrel, it estimated that variable cost per passenger will locomote to $90. What will be the new break-even point in passengers and in number of passenger train cars? Contribution Margin = Sales per unit Variable expenses per unit $160 - $90 = $70 Break-even...If you want to get a full essay, order it on our website: BestEssayCheap.com

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