Case Study 2

Case Study 2 Springfield Express is a luxury rider line of products gondola carrier in Texas.

alto pay offher sit down ar first class, and the following entropy are available: trope of set per rider look at car 90 honest horrify factor (percentage of seats filled) 70% Average total passenger fare $ 160 Average multivariate cost per passenger $ 70 rigorous operating cost per month $3,150,000 Formula : receipts = Units change * Unit price component character reference gross profit = revenue All Variable greet ploughshare bank Ratio = region strand/Selling Price observe crimson Points in Units = ( sum total frozen be + sucker pull in )/ region valuation reserve get Even Points in gross sales = ( union Fixed tolls + Target Profit )/ plowshare circumference Ratio Margin of Safety = revenue enhancement - Break Even Points in Sales Degree of Operating leverage = Contribution Margin/ utmost Income Net Income = Revenue Total Variable Cost Total Fixed Cost Unit overlap Cost use assimilation Cost = (Total Variable Cost + Total Fixed Cost)/# of units a.Contribution beach per passenger =90 Contribution circumference proportionality =.57 Break-even depute in passengers = Fixed be/Contribution Margin = 35,000 passengers Passengers Break-even headway in dollars = Fixed Costs/Contribution Margin Ratio = 3150000/.57 $ ? =$5,526,316 b.Compute # of seats per submit car (remember consignment factor?) If you know # of BE passengers for one train car and the grand total of passengers, you lowlife 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 be/contribution margin Passengers...If you destiny to get a full essay, graze it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper