ACCT 505 Week 3 Case Study 2 Answers with Explanation

Case Study 2

07/26/2012

ACCT505-Managerial Accounting

Professor Anita Wibbert

A. What is the break-even point in passengers and revenues per month?

(1) Per passenger

Sales..? 160

Variable Expenses????.70

Unit Contribution Margin?????.9060-70

Fixed expenses/ Unit Contribution Margin3,150,000/9035,000 passengers in break-even point

(2) Contribution Margin Ratio (CM Ratio) Contribution Margin/Selling Price90/160

Break-even point in dollarsFixed Costs/Contribution Ratio3,150,000/5,600,000

B. What is the break-even point in number of passenger train cars per month?

Number of seats per train car Average load factor x Number of seats per train car x 9063...

ACCT 505

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**Excerpt from file: **ACCT505Week3CaseStudy2Answerswith Explanation Case Study 2 07/26/2012 ACCT505-Managerial Accounting Professor Anita Wibbert A. What is the break-even point in passengers and revenues per month? (1)Per passenger Sales.. 160 Variable Expenses.70 Unit Contribution Margin.9060-70 Fixed expenses/ Unit

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