5. Suppose management needs a March income statement for external reporting purposes. Provide a budgeted income statement based on the data in Tables 1 and 2. Ignore income taxes able 1. Ann Arbor Railroad Projected Cost for March 20X0 COST TYPE COST ELEMENTS AMOUNT Head office-related (in Detroit station) Administrative personnel, marketing costs, IT costs $500,000 per month Roadbed, track, and signaling equipment-related Depreciation of track & signaling equipment Interest payments $1,000,000 per month $500,000 per month Maintenance workers Repair materials $5,000 per month $200 per slow-speed trip $400 per high-speed trip Station-related Building costs (temperature control, leasing costs, etc.) and other costs (including cleaning service, ticket, and baggage handling personnel) Detroit: $20,000 per month Chicago: $32,000 per month All other stations combined: $7,000 per month Train-related Leasing costs slow-speed train Leasing costs high-speed train $100,000 per month per train $500,000 per month per train Hauling costs (power and fuel) Engineers and onboard service staff total $5,000 per slow-speed trip $8,000 per high-speed trip $150,000 per month Onboard services Gourmet services contract $700,000 per month $8 per passenger 4 Table 2. Ann Arbor Railroad Projected Business for March 20X0 VOLUME Slow-Speed High-Speed Trips 200 300 Total Passengers (over all trips) 75,000 100,000 Average Ticket Price $50 $180 Note: Passenger volumes and fares are averaged across trips. Trips and Average Ticket Price both refer to roundtrip