Springfield

Case Study ll a) Fixed terms = 3,150,000 160x = 70x + 3,150,000 90x = 3,150,000 X = 35,000 passengers breakeven outrage 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 = xcl 190x = 70x + 3,150,000 X = 26,250 breakeven passengers At 60% vitiate = 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% encumbrance = 90x0.7 = 63 Breakeven cars = 45,000 / 63 = 715 cars e) After measure profit = 750,000 Then before assess 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 freightage was 10%; bare-ass V. load 80% - Old V. load 70% New unsettled 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 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 declare the despatch if there are more than 2,380 passengers on this driveway any month. The fixed cost would exceed the operating income generated from this course. 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 eccentric person of peck leave be travelling on this route? Maybe the people need just an economy hackneyed carrier on this route.If you want to get a expert essay, order it on our website: OrderEssay.net

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