Acc 509. Springfield Express Essay

capital of Illinois gestate is a luxury passenger pallbearer in Texas. All seat are first class, and the following selective information are available Number of seats per passenger mark off cable car 90 total load factor (percentage of seats filled) 70% Average full passenger regimen $ 160 Average variable quantity live per passenger $ 70 Fixed operating be per calendar month $3,150,000a.What is the break-even superlative in passengers and revenues per month?b.What is the break-even point in tote up of passenger train cars per month? c.If Springfield Express raises its mediocre passenger fare to $ 190, it is estimated that the average load factor go out decrease to 60 percent. What will be the monthly break-even point in number of passenger cars? d.(Refer to original data.) terminate cost is a significant variable cost to any railway. If new oil increases by $ 20 per barrel, it is estimated that variable cost per passenger will rise to $ 90.See moreSocial Satire in T he Adventures of Huckleberry Finn hearWhat will be the new break-even point in passengers and in number of passenger train cars? e.Springfield Express has experienced an increase in variable cost per passenger to $ 85 and an increase in total obdurate cost to $ 3,600,000. The company has decided to raise the average fare to $ 205. If the tax revenue rate is 30 percent, how many a(prenominal) passengers per month are needed to take back an after-tax profit of $ 750,000? f.(Use original data).Springfield Express is considering offering a discounted fare of $ 120, which the company believes would increase the load factor to 80 percent. Only the additive seats would be sold at the discounted fare. Additional monthly advertize cost would be $ 180,000. How much pre-tax income would the discounted fare provide Springfield Express if the company has 50 passenger train cars per day, 30 days per month? g.Springfield Express has an opportunity to obtain a new pathway that would be trav eled 20 times per month.The company believes it can sell seats at $ 175 on the route, but the load factor would be only 60 percent. Fixed cost would increase by $ 250,000 per month for additional personnel, additional passenger train cars, maintenance, and so on. Variable cost per passenger would remain at $ 70. 1.Should the company obtain the route?2.How many passenger train cars must Springfield Express operate to create pre-tax income of $ 120,000 per month on this route? 3.If the load factor could be change magnitude to 75 percent, how many passenger train cars must be operated to build pre-tax income of $ 120,000 per month on this route? 4.What qualitative factors should be considered by Springfield Express in making its decision about acquiring this route? 5.