Acct 504 final exam
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Description
Acct 504
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?
BP in PassengersFC/CM
BP in Passengers3,150,000/ (160-70)
BP in Passengers35,000
BP in RevenueBP in Passengers*Average Full Passenger Fare
BP in Revenue35,000 Passengers*160
BP in Revenue5,600,000
b. What is the break-even point in number of passenger train cars per month?
CM (9070%)905,670
BP in Passenger CarsFC /CM
BP in Passenger Cars3,150,000/5,670
BP in...