Case Study 2 Solution 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. What is the break even point in passengers and revenues per month Contribution margin per passanger = $90 Break even point per passanger = $35,000 35000 Contribution margin ratio= $2 Break even point in dollars = $5,600,000 5600000 b. What is the break even point of passenger train cars per month 63 Compute # of seats per train car(remember load factor?) 555.5555556 Number of train cars rounded 556 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 the monthly break even point in the number of passenger cars?
35,000 / 63 = 555.55 556 is break-even point in number of passenger train cars per month. 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? To find the monthly break-even point in number of passenger cars if Springfield Express raises its average passenger fare to $190.00 and the estimation that the average load factor will decrease to 60%, the following calculation is provided: $3,150,000 / $120.000 = $26,250 is the break-even in passengers. 90 / 60% = 54 is the average passenger per car.
What will be the monthly break-even point in number of passenger cars? 190 -70 = 120 90 * .6 = 54 Break-even for number of cars: (3,150,000 +0)/ (120) = 26250 26250/54 : 486 d. (Refer to original data.) Fuel cost is a significant variable cost to any railway. If crude oil increases by $ 20 per barrel, it is estimated that variable cost per passenger will rise to $ 90. What will be the new break-even point in passengers
2a. What is the shortest loan (36 months, 48 months, 60 months or 72 months) that has a monthly payment within your $500 budget that will allow you to buy the $30,000 car? Answer: Through Bank of America, I found a rate of 2.99% for the 36, 48 and 60 month loans. We are able to put down 20% and will need to finance $24,000. The shortest loan period for the $30,000 car that would be under our $500 limit is the 60 month loan at a rate of $431.13 per month.
The following costs were incurred in the first processing department during the month: The ending inventory was 90% complete with respect to materials and 45% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. 8. award: 1 out of 1.00 point How many units are in ending work in process inventory in the first processing department at the end of the month?
A.cash B.unsecured loans C.time deposits D.U.S. government securities Question 12 of 20 5.0 Points Identify and describe the factors, in addition to supply and demand, that determine interest rates. Question 13 of 20 5.0 Points You need $8,000 four years from now for a down payment on your future house. How much money must you deposit today if your credit union pays 5% interest compounded annually? Pick the closest answer.
http://www.cimaglobal.com/Thought-leadership/Newsletters/Insight-e-magazine/Insight-2010/Insight-March-2010/Standard-costing/ Week 4 Dq2: Flexible budgets provide different information than static budgets. Discuss some of these differences. Is a flexible budget always better? Are there times when you’d recommend using a static budget over a flexible budget? Week 5 Assignments: Acc 206_Week_Five_Assignment Chapter Eight Problems 1.
5, 6) Lima Parts, Inc., shows the following overhead information for the current period: Actual overhead incurred $ 29,400 2/3 of which is variable Budgeted fixed overhead $ 8,640 per hour Standard variable overhead rate per direct labor-hour $ 9.00 Standard hours allowed for actual production 2,350 hours Actual labor-hours used 2,200 hours ________________________________________ Required: What are the variable overhead price and efficiency variances and fixed overhead price variance? (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.) Amounts Variable overhead: Price variance $ (0%) (0%) Efficiency variance $ (0%) (0%) Fixed overhead: Price variance $ (0%) (0%) ________________________________________ P16-45 Overhead Variances (L.O.
4.1: Performance Report: This report shows how well/poorly a business is doing based on a current revenue, and can identify performance areas that may need improvement. Written for: Supervisors, managers, operations managers, CEO/Head office and relevant stakeholders. 4.2: Activity Statement: Used to identify and summarise GST amounts payable and receivable for a business over a certain period, may include PAYG income tax, PAYG tax withheld, Fringe benefits tax and fuel tax. All business owners registered for GST must lodge a BAS statement for each period, for every 28 day period that a business doesn’t lodge will incur a charge of
As such, lead time for the Europe DC is 6 weeks (1 week for production, 5 weeks in transit). As orders are shipped to the DC by Vancouver weekly, and production is initiated by order placements, we have determined the review period of the Europe DC to be 1 week. It may also be concluded that the nature of the situation at Europe DC follows a fixed-time period model. Thus, exposure period is 7 weeks. Europe DC holds six variants of the printer and the average review period demand of each variant is determined from the