Springfield

Case Study ll a) Fixed terms = 3,150,000 160x = 70x + 3,150,000 90x = 3,150,000 X = 35,000 riders breakeven disgust even revenue = 35,000x160 = 5,600,000 b) at 70% weight = 90x0.7 = 63 Breakeven per car = 35,000 / 63 = 556 approximately c) Sale price = one hundred ninety 190x = 70x + 3,150,000 X = 26,250 breakeven passengers At 60% burden = 90x0.6 = 54 Breakeven cars = 26,250 / 54 = 487 approximately d) spic-and-span variable cost = 90 per passenger 160x = 90x + 3,150,000 X = 45,000 breakeven passengers At 70% ladle = 90x0.7 = 63 Breakeven cars = 45,000 / 63 = 715 cars e) After measure profit = 750,000 Then before task profit: (let profit = y) y 0.3y = 750,000 y = 1,071,429 approximately 1,071,429 = gross sales Cost 1,071,429 = 205x (85x + 3,600,000) 1,071,429 = 205x 85x 3,600,000 120x = 4,671,429 X = 38,929 passengers f) Increase in variable freight was 10%; bare-ass V. load 80% - Old V. load 70% New versatile cost = (discount rate- v. cost) New Variable cost= (120-70)= $50 per passenger Additional seats: 90 x 10%= 9 seats Income per day = 9 passenger x $50 V.

C = $450 per day Income per calendar month = $450 x 30 day = $13,500 Revenue for a month = $13,500 x 50 passenger cars= $675,000 Pre-Tax = $675,000 180,000 = $495,00 g) 1) at 60% load per car passenger = 90x0.6 = 54 The company shouldnt produce the despatch if there are more than 2,380 passengers on this pass any month. The fixed cost would exceed the operating income generated from this way. 2) 120,000 = 175x 70x 250,000 X = 3,524 passengers At 60% load = 90x0.6 = 54 Passenger cars = 3,524 / 54 = 65 approx 3) At 75% load = 90x0.75 =! 67.5 Passenger cars = 3,524 / 67.5 = 52 approx 4) What qualitative factors should be considered by Springfield? Springfield is a luxury flattop; therefore it needs to assess what display case of peck leave be travelling on this route? Maybe the people need just an economy quantity carrier on this route.If you want to get a unspoiled essay, order it on our website: BestEssayCheap.com

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