Help me complete the next question based on the previous table. Complete the form at the same time to complete the questions raised in the document, to explain

Question 2- Slow-speed service High-speed service Revenue: $4620000 $22200000 Costs: Variable Costs Cost Driver . Hauling Costs # of Trips $1620000 $3260000 . Repair materials # of Trips $69000 Gourmet services # of passengers NIA $960000 . Leasing costs # of Trains $1 100000 $5200000 Total Variable Costs $2789000 $9588000 Fixed Costs Allocation Total Costs . Head office allocation 50% $550000 $275000 $275000 Depreciations 50%% $1450000 $725000 $725000 . Interest 50% $550000 $275000 $275000 . Maintenance 50% $5800 $2900 $2900- Station costs 50% $68060 $34030 $34030 . Train leasing N/A- $3150000 $550000 $2600000 . Engineers and staff 50% Al $153020 $76510 $76510- . Gourmet fixed costs N/A~ N/A $375000 Total Fixed Costs $2056940 $4481940 Total Costs: Variable + Fixed $3745940 $8869940 Cost per passenger 48.63 73.92 Operating Income (Revenues-Costs) $874060 $13330060 Profitability Positive positive Profitability per passenger 11.35 111.08 Profitability per passengerlQuestion 3 Per Passenger Number of Total Round Trip Passengers Incremental Revenues Incremental Costs ??????? Incremental Income Question 4 - Segments Break-even Slow-speed service High-speed service % Total Revenue 100.00% 100.00% 100.00% Costs: Variable Costs % % % Contribution Margin % % Direct Fixed Costs Segment Margin Indirect (Common) Fixed Costs Operating Income Sales Mix 100%Question 5 - Company-wide Break-even. Sales Slow-speed service High-speed service Volume Sales Volume Sales Company Breakeven S S S Slow-speed service High-speed service Volume Sales Volume Sales Segments Breakeven SAnn Arbor Railroad Company case Ann Arbor Raillroad (AAR) 1s a railroad company that i1s partly financed by the US Department of Transportation through its high-speed rail stimulus initiative. AAR operates daily train service between Detroit, MI and Chicago, IL. The Company operates two classes of passenger trains: slow speed and high-speed. AAR built and currently maintains a roadbed and tracks between the two cities as well as stations in both Detroit, MI and Chicago, IL. The tracks and signaling equipment cost approximately $1 million per mile to build and will be depreciated over thirty years. The bulk of the Company's station-related costs arise from the Detroit and Chicago stations. Costs for the intermediate stations, which are only used by the slow-speed trains, are largely paid for by the local municipalities. AAR does not own any trains, but leases them. Specifically, it leases 10 high-speed trains {locomotives plus carriages) from Siemens AG and 10 slow-speed trains (locomotives plus carriages) from GE. Locomotives refer to the motorized entity pulling the carriages. Carriages carry passengers but are unable to move autonomously. The Company i1s responsible for maintaining the trains. The high-speed trains are technologically advanced and more costly than the slow-speed trains, which are technologically simpler and older. AAR employs the train engineers and the onboard service staff. The Company has contracted with Gourmet Services to provide complimentary food and drinks to high-speed passengers. The contract entails a fixed monthly payment of $750,000 plus %8 per passenger. Slow-speed train passengers receive no complimentary items; they can buy food and beverages from an independent catering company with no profit or loss for AAR. Projected cost and travel volume data appear in Tables 1 and 2. Please refer to these to answer the following questions. The data are only approximate and have been modified to ease computations. Table 1 Ann Arbor Railroad - Projected Cost for March 20X0 COST TYPE COST ELEMENTS AMOUNT Head office-related Administrative personnel, marketing costs, $550,000 per month (in Detroit station) IT costs Roadbed, track, and Depreciation of track & signaling $1,450,000 per month signaling equipment-related equipment Interest payments $550,000 per month Maintenance workers $5,800 per month Repair materials $230 per slow-speed trip $420 per high-speed trip Station-related Building costs (temperature control, Detroit: $25,000 per month leasing costs, etc.) and other costs Chicago: $36,000 per month (including cleaning service, ticket, and All other stations combined: baggage handling personnel) $7,060 per month Train-related Leasing costs - slow-speed train $1 10,000 per month per train Leasing costs - high-speed train $520,000 per month per train Hauling costs (power and fuel) $5,400 per slow-speed trip $8,150 per high-speed trip Engineers and onboard service staff total $153,020 per month Onboard services Gourmet services contract $750,000 per month $8 per passengerTable 2 Ann Arbor Railroad Projected Business for March 20X0 VOLUME Slow-Speed High-Speed Trips 3 400 Total Passengers 77,000 120,000 (over all trips) Average Ticket Price 560 F185 Note: Passenger volumes and fares are average on trips. Case Requirements: 1. What is the total projected cost for March 20X07 (10 points) 2. What 1s the projected profitability per passenger (revenues minus costs) for the high- speed and slow-speed services for March 20X 07 (For this question, assume that common fixed costs are allocated equally (1.e., 50% each) between high-speed and slow-speed services). (20 points) 3. Assume that you are the manager in charge of the high-speed service. On March 20th, MBA students from the Detroit area who are taking an Entrepreneurial Management elective course approach you with the following offer. The students want to reserve 30 seats for a round trip from Detroit to Chicago on March 2 1st to conduct a market research study for their final project. Specifically, the MBA students have arranged for undergraduates to participate in the study, which 1s aimed at identifying factors that make train travel more attractive to customers. The MBA students are on a limited budget and propose to pay Ann Arbor Railroad $1,000 for the round trip for the 20 seats. Tickets sales for March 21st have been low, and, as of today, there are still over 100 seats available. Would vou accept the students' offer? (20 points) 4. Using the information from table 2, what 15 the number of tickets that Ann Arbor Railroad must sell to breakeven in each service line? (25 points) 5. Using the information from table 2, what is the volume of sales in $ that Ann Arbor Railroad must generate to breakeven overall? (25 points)