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.
- Spring '11