90 / $160 = 0.562556.25% $3,150,000 / 0.5625 = $5,600,000 is the break-even point in revenue per month. b. What is the break-even point in number of passenger train cars per month? The break-even point in number of passenger train cars per month is calculated below: 90 * 70% = 63 is the break-even average passenger per car. 35,000 / 63 = 555.55 556 is break-even point in number of passenger train cars per month.
d. increase by $1,400. status: incorrect (0.0) correct: a your answer: b feedback: Incorrect. [600 × $3] - [700 × ($8 - $6)] = $400 decrease ________________________________________ 3 The following information pertains to the Norfolk Company's three products: Assume that Product C is discontinued and the extra space is devoted to the production of Product A. Product A production is increased to 500 units per year, but the selling price on all units of A is reduced to $7.00. Assuming everything
Springfield Express is a luxury passenger carrier in Texas. All seats are first class, and the following data are available: Number of seats per passenger train car 90 Average load factor (percentage of seats filled) 70% Average full passenger fare $ 160 Average variable cost per passenger $ 70 Fixed operating cost per month $3,150,000 a. Contribution margin per passenger = $160 - $70 = $90 Contribution margin ratio = $90 / $160 = 56.25% Break-even point in passengers = 3,150,000 / 90 = 35,000 Beak-even point in dollars = 3,150,000 / .5625 = $5,600,000 b. Compute # of seats per train car (remember load factor?) = 90 * 70% = 63 If you know # of BE passengers for one train car and the grand total of passengers, you can compute # of train cars (rounded) Break-even # of passengers = 35,000 Break-even # of cars = 35,000 / 63 = 556 c. Contribution margin = 190 – 70 = 120 Break-even point in passengers = fixed costs/ contribution margin Passengers = 3,150,000 / 120 = 26,250 @ 60% load = 90 * 0.6 = 54 train cars (rounded) = 26250 / 54 = 486 The monthly break-even point in # of cars = 486 d. Contribution margin = 160-90 = 70 Break-even point in passengers = fixed costs/contribution margin Passengers = 3,150,000 / 70 = 45,000 train cars (rounded) = 45,000 / (90*0.7) = 45,000/63 = 715 The new break-even point in passengers = 45,000 The new break-even point in # of cars = 715 e. Before tax profit less the tax rate times the before tax profit = after-tax income = Contribution Margin = 205 – 85 = 120 Y = before tax profit 750,000 = y - .30y 750,000 = .70y 1,071,429 = y X = # of
How much does a worker make a month making 1.00 per hour (40 hour work weeks)? _____________________________________________________________ 2. How much would a 1920 Ford Touring cost per month if bought with an installment plan of 12 installments (one every month) in one year?_______ 3. What happened in the 1920s that greatly lowered the price of cars (automobiles) and other consumer
ACCT505 Case Study 1 Week 3 Springfield Express is a luxury passenger carrier in Texas. All seats are first class, and the following data are available: Number of seats per passenger train car 90 Average load factor (percentage of seats filled) 70% Average number of Passengers per trip 63 Average full passenger fare $ 160 Average variable cost per passenger $ 70 Fixed operating cost per month $3,150,000 Formula : Revenue = Units Sold * Unit price Contribution Margin = Revenue – All Variable Cost Contribution Margin Ratio = Contribution Margin/Selling Price Break Even Points in Units = (Total Fixed Costs + Target Profit )/Contribution Margin Break Even Points in Sales = (Total Fixed Costs + Target Profit )/Contribution Margin Ratio Margin of Safety = Revenue - Break Even Points in Sales Degree of Operating Leverage = Contribution Margin/Net Income Net Income = Revenue – Total Variable Cost – Total Fixed Cost Unit Product Cost using Absorption Cost = (Total Variable Cost + Total Fixed Cost)/# of units a. The Contribution margin per passenger = $160-$70=$90 Contribution margin ratio = $160-$90=56.25% The Break-even point for passengers per month = $3,150,000/$90= 35,000 Passengers The Break-even point in dollars per month = $3,150,000/56.25% = $56,000 b. The number of seats per train car based on average load is 90 x 0.70 = 63. The break-even point in number of passenger train cars per month = 35,000/63= 555.55 or 556 train cars c. Contribution margin =$190-70=$120 Break-even point in passengers = 3,150,000/ $120= 26,250 Passengers The number of seats per train car based on
(Data taken from Exhibit 9, detailing passengers for regular and discount flights.) o This forced southwest to alter pricing in June 1972, raising fares to $26 one way / $50 round trip. From Exhibit 8 we see that Operations and Maintenance also increased $18 so the revenue was needed was approximately $800 per flight. With the new fare, Southwest needed between 31 and 32 passengers per flight for a break even point
We estimated how many customers we need to breakeven each year. Cash flow Projection for five years Cash Flow Analysis Year 1 Beginning Balance $0 Capital $10,000 Revenue (10 Clients) 59,700 $66,700 Disposables Purchases 49,700 Administrative $7,400 (Advertising 200, Other costs 200, Airlines 1,000, Office 6000) Wages $4,000 (2,000 each for Benny and Janet) $61,100 Ending Balance $5,600 Year 2 Beginning Balance $5,600 Revenue (15 Clients) $89,550 $93,150
Customer Analysis The total industrial consumption of cyano-acrylates which the new Bond-A-Matic 2000 would dispense was 265,000 pounds in FY 1978, expected to grow to about 335,000 pounds in FY 1979. Across 16 SIC categories, approximately 174,909 firms currently used cyano-acrylates (at a 15.5% market penetration.) 11% of CA users, i.e. approximately 19,240 firms used over 10 pounds of CAs per year, comprising at-least 75% of total current market. Assuming that growth in the CA segment stagnates, and that only heavy CA applicators would be interested in dispensing equipment the total market is still estimated at 19,240 users.
Cost and Revenue A manufacturer sells a product at $8.35 per unit, selling all produced. The fixed cost is $2116 and the variable cost is $7.20 per unit. At what level of production will a) there be a profit of $4600? b) there be a loss of $1150? c) the break even point occur?
The equal probability of the copier breaking down before or after is the average time between breakdowns. So z^2/36 = 1/2. Solving gives z = 4.243 weeks. The uniform distribution for the number of copies sold per day, standard number of copies sold will be the average of the high and low estimates, which is 5000 copies per day. At 10 cents each, the expected revenue of $500 per day, and the amount will be lost while the copier is broken.