Acc 509. Springfield Express Essay

Springfield render is a luxury rider carrier in Texas. All seats atomic number 18 premier class, and the following data are operable Number of seats per passenger aim car 90 add up ladle factor (percentage of seats filled) 70% Average full passenger fare $ one hundred sixty Average variable damage per passenger $ 70 Fixed operating embody per month $3,150,000a.What is the break-even point in passengers and revenues per month?b.What is the break-even point in number of passenger fit cars per month? c.If Springfield extend rising slopes its medium passenger fare to $ 190, it is estimated that the average fill factor ordain come down to 60 percent. What forget be the periodical break-even point in number of passenger cars? d.(Refer to received data.) Fuel toll is a significant variable cost to both railway. If crude oil increases by $ 20 per barrel, it is estimated that variable cost per passenger will rise to $ 90.See more  cordial Satire in The Adventur es of Huckleberry Finn EssayWhat will be the new break-even point in passengers and in number of passenger train cars? e.Springfield take out has experienced an increase in variable cost per passenger to $ 85 and an increase in total frigid cost to $ 3,600,000. The connection has decided to raise the average fare to $ 205. If the tax dictate is 30 percent, how many passengers per month are needed to generate an after-tax profit of $ 750,000? f.(Use original data).Springfield Express is considering offering a discounted fare of $ 120, which the conjunction believes would increase the deprave factor to 80 percent. Only the surplus seats would be sold at the discounted fare. Additional monthly advertising cost would be $ 180,000. How much pre-tax income would the discounted fare cater Springfield Express if the company has 50 passenger train cars per day, 30 years per month? g.Springfield Express has an opportunity to carry a new route that would be traveled 20 times per mont h.The company believes it can sell seats at $ 175 on the route, but the load factor would be only 60 percent. Fixed cost would increase by $ 250,000 per month for additional personnel, additional passenger train cars, maintenance, and so on. Variable cost per passenger would remain at $ 70. 1.Should the company obtain the route?2.How many passenger train cars must Springfield Express operate to pull pre-tax income of $ 120,000 per month on this route? 3.If the load factor could be increased to 75 percent, how many passenger train cars must be operated to earn pre-tax income of $ 120,000 per month on this route? 4.What qualitative factors should be considered by Springfield Express in making its decision about(predicate) acquiring this route? 5.