1. Amtrack has experienced an increase in the variable cost per passenger to $80 and an increase in total fixed cost to $3,000,000. Amtrack has decided to raise the average fare to $200.  If the tax rate is 40%, how many passengers per month are needed to generate an after-tax profit of $840,000? (round to the nearest whole dollar and round up to the next whole unit).

Answer rating: 100% (QA)

SOLUTION To determine the number of passengers per month needed to generate an aftertax profit of 840000 for Amtrack we need to consider the revenue a... View the full answer