Acct505, Case Study1

In: Business and Management

Submitted By pcrowder
Words 277
Pages 2
ACCT505
Prof. Berry
Case Study 1

a. CM = SP-VC (160-70=90)
CMR = CM ÷ SP (90 ÷ 160 = 056)
BEP/PASSENGER: 3,150,000 ÷ 90 = 35,000 PASSENGERS
BEP/DOLLARS: 3,150,000 ÷ .56 = 5,625,000 DOLLARS

b. 90 X .70 = 63 SEATS
35,000 ÷ 63 = 556 TRAINS CARS

c. CM = 120
BEP/PASSENGER: 3,150,000 ÷ 120 = 26,250 PASSENGERS
26,250 ÷ 63 = 486 TRAINS CARS
CMR = CM ÷ SP (120 ÷ 190 = .63)

d. CM = SP – VC (160 – 90 = 70)
CMR = CM ÷ SP (70 ÷ 160 = .44)
BEP/PASSENGERS: 3,150,000 ÷ 70 = 45,000 PASSENGERS
BEP/DOLLARS: 3,150,000 ÷ .44 = 7,159,091 DOLLARS
450,000 ÷ 63 = 714 TRAIN CARS

e. CM = SP-VC (205 – 85 = 123)
CMR= CM ÷ SP (123 ÷ 205 = .6)
BEP/PASSENGERS: 3,600,000 ÷ 123 = 48,000 PASSENGERS
BEP/DOLLARS: 3,600,000 ÷ .6 = 6,000,000 DOLLARS
48,000 ÷ 63 = 762 TRAIN CARS

6,000,000 – 3,600,000 = 2,400,000
2,400,000 X .30 = 720,000
2,400,000 – 720,000 = 1,680,000
1,680,000 ÷ 63 = 26,667 PASSENGERS

f. 70% of 90 = 63; 80% of 90 = 72
72 – 63 = 9 DISCOUNTED SEATS PER TRAIN CAR
CM = SP-VC (160 - 120 = 40)
CMR = 40 ÷ 160 = .25
BEP/PASSENGERS: 3,150,000 + 180,000 = 3,330,000
3,330,000 ÷ 40 = 83,250 PASSENGERS
BEP/DOLLARS 3,330,000 ÷ .25 = 13,320,000 DOLLARS

g. 60% OF 90 = 54
CM = SP-VC (175 – 70 = 105)
CMR = CM ÷ SP (105 ÷ 175 = .6)
BEP/PASSENGERS: 3,400,000 ÷ 105 = 32,380 PASSENGERS
BEP/DOLLARS: 3,400,000 ÷ .6 = 5,666,667 DOLLARS
32,380 ÷54 = 600 TRAIN…...

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