springfield(1) - -180000 Additional pre tax profit per...

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a Brak even  in passengers 35000 Break even in $ 5600000 b Average passenger per car 63 Break even in train cars 556 train cars c Brean even in passengers 26250 Average passenger per car 54 Break even in train cars 486 train cars d Break even in passengers 39375 Average passenger per car 63 Break even in train cars 625 train cars e Before tax profit 1071429 Passengers needed 38929 f Revenues 90*.1*120*50*30 1800000 less vairble cost 1050000 Contribution margin 750000 less advertising cost
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Unformatted text preview: -180000 Additional pre tax profit per month 570000 g 1 Revenues 90*.6*175*20 189000 less vairble cost 75600 Contribution margin 113400 less advertising cost-250000 Additional pre tax loss per month-136600 The company should not go for the new route 2 Passengers 3523.81 No of cars per month 65 3 No of cars per month 52 4 The revenues of other route is not affected by this route. The quality of services should be equal to the existing route....
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This note was uploaded on 10/08/2011 for the course ACCOUNTING AC 505 taught by Professor Russ during the Spring '11 term at Keller Graduate School of Management.

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