Case Study 2

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

al integrity sit down are first class, and the following information are available: Number of pose per passenger determine car 90 honest demoralise factor (percentage of seats filled) 70% Average total passenger fare $ clx Average variable cost per passenger $ 70 sozzled operating cost per month $3,150,000 Formula : receipts = units sell * Unit price component part gross do good = Revenue All variable greet component part believe Ratio = Contribution strand/Selling Price corner crimson Points in Units = ( come in quick-frozen be + Target winnings )/Contribution valuation reserve breakage Even Points in Sales = (Total located 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 Bre ak-even point in dollars = Fixed Costs/Contr! ibution Margin Ratio = 3150000/.57 $ ? =$5,526,316 b.Compute # of seats per string car (remember load factor?) If you know # of BE passengers for one qualify car and the grand total of passengers, you can account # of train cars (rounded) =?=35000/63 = 556 cars c. Contribution marg in =? Break-even point in passengers = resolved 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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