Acct 552 Case Study 1

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

The 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

E. Norwalk Express has experienced an increase in variable cost to $100 and an increase in total fixed cost to $3,200,000. The company has decided to raise the average fare to $ 180. If the tax rate is 20 percent, how many passengers per month are needed to generate an after-tax profit of $ 700,000? (Round to the nearest whole dollar and unit.)

F. Norwalk Express is considering offering a discounted fare of $130, which the company believes would increase the load factor to 90 percent. Only the additional seats would be sold at the discounted fare. Additional monthly advertising costs would be $ 170,000. How much pre-tax income would the discounted fare provide Norwalk Express if the company has 40 passenger train cars per day, 30 days per month?

Can u give me the correct answers plz?