Case Study 1 a) What is the break-even point in passengers and revenues per month? Contribution margin per passenger = $ 160- $ 70 = $ 90 per passenger Contribution margin ratio = $ 90/$160 = 56.25% Passengers = $3,150,000/$ 90 per passenger = 35,000 passengers Break-even point in dollars = $ 3,150,000/0.5625 = $ 5,600,000 b) What is the break-even point in number of passenger train cars per month? Average load factor = 70% of 9090 X 0.70 = 63 seats per train car 35,000/ 63 = 556 train cars c) If Springfield Express raises its average passenger fare to $ 190, it is estimated that the average load factor will decrease to 60 percent. What will be the monthly break-even point in number of passenger cars? Contribution margin = $190 - $ 70 = $120 per passenger 90 X .60 = 54 filled seats Break-even point in passengers = $ 3,150,000/$120 = 26,250 passengers 26,250/54 = 486 train cars d) (Refer to original data.)
cost per hire | Sales Department | Increase revenue | Avg. Purchase Value | QC Department | Decrease Waste | Reject Ratio | Transportation Department | To increase efficiency of fuel usage | Fuel Usage/ton/km | Maintenance Department | Work Identification | % Available man hours used in proactive work | 2. Janice owns the Cute Cut Salon. She employs five stylists and pays each a base salary of $1,500 per month. One of the stylists serves as the manager, receiving an extra $500 per month.
3 Purchased washers and dryers for $25,000, paying $10,000 in cash and signing a $15,000, 6-month, 12% note payable. 4 Paid $1,200 for a one-year accident insurance policy. 10 Received a bill from the Daily News for advertising the opening of the Laundromat $200. 20 Bob withdrew $700 cash for personal use. 30 The company determined that cash receipts for laundry services for the month
Explain the problem(s) associated with the labor productivity. Quantity $/Unit Deluxe car 4,000 units sold $8,000/car Limited car 6,000 units sold $9,500/car Labor. Deluxe 20,000 hours $12/hour Labor. Limited 30,000 hours $14/hour Solution: Firstly, we use the single-factor productivity for measuring productivity as explained below: The labor productivity (in hours) for Deluxe car: Units sold = 4,000 = 0.2 units per labor hour. Labor hours 20,000 The labor productivity (in hours) for Limited car: Units sold = 6,000 = 0.2 units per labor hour.
The complete income distribution is 29 percent make 30-50,000 dollars, 22 percent make 50-75,000 dollars, 12 percent make 75-100,000 dollars, and 8 percent make over 100,000 dollars every year. NASCAR’s fan distribution is quite significant because it varies greatly in some place. In the Northeast 20 percent of the fans reside, the Midwest 24 percent, South 38 percent, and the West just 8 percent. Also a few notables are 74 percent of NASCAR fans own their own homes 64 percent are married while 22 percent are single and 14 percent are divorced or
We make 30,000 of these fire extinguishers per year. Each extinguisher requires one handle (assume a 300 day work year for daily usage rate purposes). Assume an annual carrying cost of $1.50 per handle; production setup cost of $150, and a daily production rate of 300. What is the optimal production order quantity? (4 points) Problem 4: We need 1,000 electric drills per year.
We plan on phasing out Acre so we will leave its current positioning as is. We want to position Able to shift into the traditional market. We are introducing a new high end product “Antz”. | Able | Acre | Adam | Aft | Agape | Antz | Segment | Traditional | Low End | High End | Performance | Size | High End | Performance | 6.0 | 3.0 | 9.8 | 11.4 | 5.0 | N/A | Size | 14.0 | 17.0 | 10.1 | 14.6 | 8.6 | N/A | MTBF | 18000 | 13000 | 23000 | 26000 | 19000 | N/A | Marketing We will produce more during this round. We will offer price cuts for Able and increase prices on modified products.
Worldwide Paper Co | ANALYSIS Bob Prescott was considering the purchase of a new machine for WPC that would make it easier to process longwoods. He hoped the purchase would allow WPC to no longer buy shortwood from other mills and allow them to sell excess shortwood on the open market. This would help WPC to reduce operating costs and increase revenues. The total cost for the new technology was $18 million and Prescott wanted to know if this would be a sound investment. The first step in helping Prescott was to calculate a new cost of capital—as the one used by WPC was 10 years old.
In 1990 the company suffered a £20 million loss and was forced to completely restructure and a new management team was brought in headed by Michael O’Leary who made major changes to the airline. Ryanair restructured itself and became a low-fares, no –frills carrier. After the next few years Ryan air significantly slashed its fares further and managed to open up many new routes. Today, Ryan Air has destinations in 26 countries with 950 routes. Also the headquartered in Dublin, employs about 4,200 people, operates with a fleet size of 120 Boeing 737-800, carries approximately 35 Mio passengers a year and had a turnover of 1,692.5 Mio in 2006 with a net profitability of about 10% (Mayor, 2007).
Tumalet is faced with the challenge of increased cost from the escalating gas and fuel prices. It has to find ways to minimize costs and impact of fuel prices to its operations. Findings Tumalet has succeeded in improving energy efficiency. It has established the use of retro-fits that are simple and quick. The company has also adopted the use of low-energy bulbs and dimming lighting of hallways at day time.