The Nevada railroad company expects to incur monthly fixed cost of $5.5 million and a variable...

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The Nevada railroad company expects to incur monthly fixed cost of $5.5 million and a variable cost of 15 Cents per ton. The average cost of cargo haul per ton is 45 Cent. 1. How much cargo should the Railroad company haul to break-even? 2. What would be the average cost of cargo haul per ton for the break-even point and the monthly revenue? 3. If the company desires to make a profit of one-half million dollars, how much cargo should the Railroad company haul per month? The Nevada railroad company expects to incur monthly fixed cost of $5.5 million and a variable cost of 15 Cents per ton. The average cost of cargo haul per ton is 45 Cent. 1. How much cargo should the Railroad company haul to break-even? 2. What would be the average cost of cargo haul per ton for the break-even point and the monthly revenue? 3. If the company desires to make a profit of one-half million dollars, how much cargo should the Railroad company haul per month?

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To answer your questions lets go through each scenario 1 To break even the revenue should cover both ... View the full answer