Question: train cars, maintenance, and so on. Variable cost per passenger would remain at $90. 1. Should the company obtain the route? 2. How many

train cars, maintenance, and so on. Variable cost per passenger would remain at $90. 1. Should the company obtain the route? 2. How many passenger train cars must Norwalk Express operate to earn pre-tax income of $120,000 per month on this route? (Round to the nearest whole number.) 3. If the load factor could be increased to 70 percent, how many passenger train cars must be operated to earn pre-tax income of $120,000 per month on this route? (Round to the nearest whole number.) 4. What qualitative factors should be considered by Norwalk Express in making its decision about acquiring this route?
Step by Step Solution
There are 3 Steps involved in it
To answer these questions we need to analyze the financial implications and qualitative factors asso... View full answer
Get step-by-step solutions from verified subject matter experts
