Reference no: EM132634537

Norwalk Express is a luxury passenger carrier in Connecticut. All seats are located in first class, and the following data are available:

Number of seats per passenger train car 70

Average load factor (percentage of seats filled) 80%

Average full passenger fee $ 170

Average variable cost per passenger $ 90

Fixed operating cost per month $ 2,700,000

Question A. What is the break-even point in passengers and revenues per month? (Round Contribution Margin percentage to the nearest tenth of a percent and the Break-Even Point to the nearest dollar).

Question B. What will be the monthly break-even point in number of passenger cars?

Question C. If Norwalk Express raises its average passenger fare to $ 200, it is estimated that the load factor will decrease to 70 percent. What will be the monthly break-even point in number of passenger cars?

Question D. (Refer to the original data). If fuel costs increase by 18 per barrel, it is now estimated that the variable cost per passenger will rise to $ 110. What would be the new break-even point in passengers and in the number of passenger train cars? (Round to the nearest whole number).