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)

Question: 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

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).

Step by Step Solution

★★★★★

3.45 Rating (155 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

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 full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Amtrack operates train routes all over the United States.They are considering a new route from Rocky Mount, NC to Washington, D.C.All seats will be business class and they are needing to make some...

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

Fairbanks Express is a luxury passenger carrier in Alaska. All seats are first class, and the following data are available: Number of seats per passenger train car ........... 60 Average load factor...

A heavy equipment manufacturing company has annual fixed costs of $14,000,000. Unit selling price is $15,000 and unit variable costs are $8,000. a. What is the company's break-even point in unit...

Assume that the activity base to be used is the number of billings per month. An analysis of data for the past six months shows the following: Number of Total Month Billings Cost January 4,200 $8,531...

Westgate Company Limited (WCL) is a Canadian manufacturer of public transportation equipment. Sales for the year ended March 31, 2016, amounted to $930 million, on which the company realized a net...

A plywood manufacturer produces a piece of plywood at a labor cost of $ 0.5 and material at $ 3.00. The fixed charge on business are $ 50,000 a month and the variable cost is $ 0.5 a piece. If one...

a. A net income of $30,000. b. A 15 percent return on sales. c. A 10 percent return on his $150,000 investment. Single Product: Required Selling Price. Janice Tyler opened a candy shop. The variable...

Assessing simultaneous changes in CVP relationships Braun Corporation sells hammocks; variable costs are $75 each, and the hammocks are sold for $125 each. Braun incurs $240,000 of fixed operating...

Electro Ltd manufactures a single electronic circuit board for the telecommunications industry. At the end of December 2011 the company received a letter of complaint from Telecom International PLC,...

WinBikes Pty Ltd is selling and provides services for bicycles. As at December 2021, it has the bank balance of $25,000. Below are estimates for the three months ending 31 March 2022 Items January...

Olney LLC only purchased one asset this year. Olney LLC placed in service on July 19, 2023, machinery and equipment (seven-year property) with a basis of $1,330,000. Assume that Olney has sufficient...

A marketing company needs to decide how much time to allocate between radio and television advertising during the next month. The manager has determined that at least 80% of the time should be...

Melany is a behavior technician that is teaching their client how to identify various household items. If the supervising Board Certified Behavior Analyst (BCBA) wants to measure that the program is...

Economic research has identified a trend exhibited by one in six Britons of hiding cash in their homes instead of investing it. This is termed the "Biscuit Tin Economy." It is estimated that $3.5...

How does Purchasing bring value to a organization? When thinking about the sort ( reject nothing to need), set in order ( tidy up), shine ( keep workplace up ) , standardize ( make neatness a rule),...

15.15 Sunny Park Tailors has been asked to make three different types of wedding suits for separate customers. The table below highlights the time taken in hours for (1) cutting and sowing and (2)...

Consider the circuit of Fig. 7.97. Find v0 (t) if i(0) = 2 A and v(t) = 0. 1 3 ett)

Marital stability is closely linked to partners' perception that child care and housework will be equitably shared. true or false

Firms increasing awareness of their impacts on the environment has led to the establishment of companies that specialize in all aspects of managing the environmental effects of operations. Search the...

Management at C. Pier Press has decided to allocate costs of the paper's two support departments (administration and human resources) to the two revenue-generating departments (advertising and...

During August 2010, Berman Companys Department Y equivalent unit product costs, computed under the weighted average method, were as follows: Material .........$2 Conversion ....... 6 Transferred in...

Look up the Form 990 of a nonprofit organization that interests you. (It is likely available on Guidestarat www.guidestar.org.) Go through the financial data and develop your own analysis of the...

Should producers of software-based services, such as ATMs, be held liable for economic injuries suffered when their systems fail?

It has been said that there is no such thing as a sustainable competitive advantage. Do you agree? Why or why not?