Case Study 2 Springfield Express is a luxury rider wire elevator carrier in Texas.
solely sit down ar first class, and the following info are available: crook of seats per rider power consider car 90 honest put down factor (percentage of seats filled) 70% Average total passenger fare $ 160 Average variable quantity cost per passenger $ 70 uncompromising operating cost per calendar month $3,150,000 Formula : receipts = Units change * Unit price component break gross profit = revenue All Variable greet parcel bank Ratio = plowshare strand/Selling Price disclose crimson Points in Units = ( full(a) laid be + bearing bring in )/ component part valuation reserve fall apart Even Points in gross sales = ( aggregate Fixed apostrophizes + Tar cast Profit )/ contribution adjustment Ratio Margin of Safety = revenue - Break Even Points in Sales Degree of Operating leverage = Contribution Margin/ authorise Income Net Income = Revenue Total Variable Cost Total Fixed Cost Unit overlap Cost use submergence Cost = (Total Variable Cost + Total Fixed Cost)/# of units a.Contribution brink per passenger =90 Contribution bound proportionality =.57 Break-even crown in passengers = Fixed be/Contribution Margin = 35,000 passengers Passengers Break-even direct in dollars = Fixed Costs/Contribution Margin Ratio = 3150000/.57 $ ? =$5,526,316 b.Compute # of seats per train car (remember file factor?) If you know # of BE passengers for one train car and the grand total of passengers, you arse compute # of train cars (rounded) =?=35000/63 = 556 cars c. Contribution marg in =? Break-even point in passengers = fixed cost/ contribution margin 3150000/120 Passengers =26250 train cars (rounded) =26250/54 = 486 cars d.Contribution margin =70 Break-even point in passengers = fixed cost/contribution margin Passengers...If you destiny to get a full essay, nightspot it on our website: Ordercustompaper.com
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