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According to data provided by British Rail to the Mergers and Monopolies Commission, the 1988 costs of a Sprinter (Class 150/2) train were: Capital Cost 525,000, Annual costs (per unit): Depreciation 26,300, Overhaul and maintenance 32,600, Stabling and cleaning 9,400, Total annual cost of: 2 drivers 20,200, 2 guards 15,600, Mileage costs (per mile): Maintenance 0.15, Fuel 0.126. Assuming 90,000 miles annual use, what is the marginal cost per train mile?
0.150
0.126
0.276
0.155
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You will need to review the activity resources and then research credit risk so you will better understand the benefits and detractors of credit risk, then respond to the questions listed:
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