Chad Martin AC 505 Case Study 2 Number of seats per passenger train car 90 Average load factor(% of seats filled) 0.7 Average full passenger fare $160 Average variable cost per passenger $70 Fixed operating cost per month $3,150,000 a. Contribution margin per passenger = $90 Contribution margin ratio = 0.5625 Break-even point in passengers = Fixed costs/Contribution Margin = 35000 Break-even point in dollars = Fixed Costs/Contribution Margin Ratio = $5,600,000 b. Compute # of seats per train car (remember load factor?) 63 If you know # of BE passengers for one train car and the grand total of passengers, you can compute # of train cars (rounded) =? 556 c. Contribution margin =? $120 Break-even point in passengers = fixed costs/ contribution margin 26250 Passengers =?
Case Study 1 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. What is the break-even point in passengers and revenues per month? Contribution Margin/Passenger = 160 -70 Contribution margin ratio = 160- 70/ 160 Break Even Points in Units = (Total Fixed Costs + Target Profit )/Contribution Margin Break-even for passengers: (3,150,000 + 0) / (160-70):35000 Break Even Points in Sales = (Total Fixed Costs + Target Profit )/Contribution Margin Ratio Break-even for revenues: (3,150,000 + 0)/ (90/160): $5,600,000 b. What is the break-even point in number of passenger train cars per month?
What will the monthly break even point in the number of passenger cars? 54 Contribution Margin 120 Break even point in passengers 26250 Train cars (rounded) 486.1111111 Rounded 486 d. Contribution Margin= $70 Break even point in passenger 45000 Train Cars= 45,000/ 63 714.2 Rounded 714 e. How many passengers per month are needed to generate an after tax profit of $750,000 Contribution Margin= $205-$85 $120.00 After tax= $750,000/ .70 1071428.57 Number of Passengers $205- $85 = $1,071.429 + $3,600,000 $120 = 4671429 38928.57 Number of Passengers Rounded 38929 f. Number of discounted seats Contribution Margin= $120 - $70 $50 Passenger seats= 90 X.80 72 Train Cars= 72 X $ 50 X 50 $180,000 Train cars per day x
If no dividends are paid in a given year, enter "0". Preferred dividends are paid before common dividends. With cumulative preferred dividends, if there are any dividends in arrears, they must be made up before common stockholders receive dividends. 25,000 x 2% x 130 = $65,000 dividends owe to preferred shareholders each year. 1st year 43,500 paid Preferred: 43,500 / 25,000 = $1.74 per share.
All profitability ratios are showing decline in the year 2008 as compared to 2007. The assets turnover went down by 1.92 times, the profit margin went down by 4.58%, the return on assets turnover went down by 46.57% and return on shareholders’ equity went down by 67.09%, they all went down due to decline in revenues in 2008 as compared to 2007. The solvency ratio has shown improvement in the year 2008 as it down to 15.88% from 24.47% in 2007, which shows a decline of 8.59%. It shows that company has less relied on debt financing against its total assets in 2008 as compared to 2007. Horizontal Analysis The net income in the year 2008 went down by around 35.87%; it was due to decline in revenues by 16.53%.
This equates to the mean or average age of the females surveyed was 30.1 years old. To find the median I will do a data array process: 25 25 26 28 28 29 35 35 40. In this equation I can see that the median age of the females is 28 which is actually two years less than the mean or average age. Next I will find the mode of the ages for the females: 25 25 26 28 28 29
Answer | | | | | Selected Answer: | True | Correct Answer: | True | | | | | Question 7 2 out of 2 points | | | A continuous random variable may assume only integer values within a given interval.Answer | | | | | Selected Answer: | False | Correct Answer: | False | | | | | Question 8 2 out of 2 points | | | A bed and breakfast breaks even every month if they book 30 rooms over the course of a month. Their fixed cost is $4200 per month and the revenue they receive from each booked room is $180. What their variable cost per occupied room?Answer | | | | | Selected Answer: | $40 | Correct Answer: | $40 | | | | | Question 9 2 out of 2 points | | | If fixed costs increase, but
Accounting 381 Winter 2010 Name ________________________________ Quiz 2: 15 points (1 point each) 1. Which of the following is an example of managing earnings down? a. Changing estimated bad debts from 3 percent to 2.5 percent of sales. b. Revising the estimated life of equipment from 10 years to 8 years.
Examine the reasons for, and the consequences in the death rate since 1900 The death rate has fallen over the last 100 years. What are the consequences of this for the population and the family? The death rate is the number of deaths per 1000 people of the population per year. Since the 1870’s, the death rate has steadily decreased. In 2001 the number of the U.K who died was 532,498 and in it was 484,367.